VOL. 133 | NO. 12 | Tuesday, January 16, 2018
Shelby County Home Sales Volume, Average Price Soar
By Patrick Lantrip
Average home sale prices and overall sales volume showed healthy gains in 2017 over the previous year, signaling another good year for the housing market in Shelby County.
Chandler Reports data show home sales volume in Shelby County hit $3.13 billion in 2017, a level not seen since 2006 and the fourth-highest amount ever. (shutterstock.com)
The average home sales price in 2017 was $165,644, a 5 percent increase from the previous year, according to real estate information company Chandler Reports, chandlerreports.com.
The volume of home sales in 2017 reached $3.13 billion, which is up 13 percent from $2.78 billion a year ago, according to the Chandler Reports data. That $3.13 billion level hadn’t been seen since 2006, and was the fourth-highest amount ever recorded in the county.
Eads’ 38028 ZIP code recorded the highest average price, at $428,959.
The number of units sold was up 8 percent in 2017, with 18,877 sales recorded compared the 17,516 units sold in 2016.
Vinh Le, with First National Realty, said he definitely noticed the increase in average sales price in 2017.
“I think a lot of people are wanting to upgrade to a bigger house,” Le said. “Our economy is growing, and that probably has something to do with it.”
As a whole, Le said 2017 was a good year for the housing market and expects 2017’s solid close to carry over into 2018.
“I’m starting to see more and more inquiries about properties each week,” he said.
Existing-home sales in rose 8 percent 2017, with 17,983 recorded last year compared to 16,629 in 2016. The average sales price of existing homes, meanwhile, reached $157,094 in 2017, up 4 percent from $150,595 a year ago.
Sales of new homes rose 1 percent for the year, with 894 sales recorded compared to 887 in 2016. The average price of a new home rose 10 percent to $337,644, compared to $305,976 a year ago.
Arlington’s 38002 ZIP code recorded the most new-home sales for the year with 187 sales averaging $316,006.
One of the dynamics affecting home sales prices is inventory. New-home construction kept somewhat of a lid on inventory, as it was down through November, with 805 building permits averaging $333,504 recorded compared to 941 averaging $277,268 filed through the first 11 months of 2016. That’s a 14 percent decrease.
Chet Whitsitt, Crye-Leike Real Estate Services sales leader and vice president, said that while 2017 was in incredible year for sales – with his company alone notching 9,100 sales totaling $1.9 billion – new inventory is still lagging, mainly due to a shortage of developed lots.
“If you go to develop a subdivision, and start the development process today, it’s going to be at least a year, maybe even close to two years before you could even start building anything,” he said.
Whitsitt said that many of the industry leaders he has spoken to predict that inventories may increase in 2018.
“They are also predicting that appreciation could slow down just a little bit because inventory may increase,” he said. “There still might be a shortage, but inventories will continue to get better.”
Regency Home Builders was the top builder in 2017 through November with 158 new-home sales recorded averaging $304,243, and 160 new home permits filed averaging $285,570.
Arlington/Lakeland’s 38002 ZIP code recorded the most new-home permits for the year – 192 averaging $304,919.
Shelby County residential foreclosures continued to remain at historic lows in 2017, according to Chandler Reports, with 1,638 recorded for the year – a 17 percent decrease from 1,968 in 2016.
Of those 1,638, the average foreclosure amount was $76,680 and the average tax appraisal value was $108,411.
Southeast Shelby County’s 38125 ZIP code had the highest foreclosure inventory value of $13 million across 79 properties, while Westwood’s 38109 ZIP code had the most homes in foreclosure in 2017, with 149 valued at $6 million.
Among lenders, Fannie Mae had the highest foreclosure inventory, with 133 homes valued at $14 million.
Bank sales – or foreclosure sales – represented 7 percent of all Shelby County homes sold in 2017. The 1,354 bank sales recorded marked a 24 percent decrease year over year. The volume of bank sales dropped 9 percent to $129 million.
Some other highlights from the overall strong local housing market in 2017:
• Every ZIP code in Shelby County experienced an increase in average home sales price.
• Forty percent of all home sales were by cash buyers, meaning no mortgage was taken out at the time of sale.
• The median sales price for 2017 was $130,000, which is up 5 percent from 2016.
• Home sales above $500,000 were up 28 percent from 2016, with 648 recorded for the year compared to 505 the previous year. Conversely, home sales valued at more than $1 million were down 6 percent, with 48 sales recorded compared to 51 in 2016.
Chandler Reports, chandlerreports.com, is a division of The Daily News Publishing Co.