By the end of 2018, new highs and lows have been set in the real estate market of Tennessee, specifically in Shelby County and the city of Memphis.
The Chandler Reports, a section of The Memphis Daily News, is a highly valued source of real estate information in Tennessee. The “Pulse Report” is a section from the Chandler Reports that reports on trending local markets for Shelby County and Memphis and have recently released a real estate update since 2018 has come to an end.
Home Sales in Memphis Increase in 2018
In categories like home sales and mortgage trends and lending, sales have been up since last year.
The average home sales in Memphis and Shelby County were set to a new record due to an historic low level of housing inventory, which led residential sales to their highest level in over 10 years. In 2018, the recorded sales totaled to $3.3 billion, which is great news considering 2006 was the last time residential sales went above $3.2 billion when the market was at its peak.
According to The Chandler Reports, recorded sales totaled out to be 18,950, which is a 0.5 % increase from last years sales of 18,869. In Tennessee, home sale prices were at an average of $173,085 which is an increase of four percent from 2017.
50% of home sales were accounted and dominated by non-Tennessee patrons where local investors equalled out to 38%.
As for mortgages in 2018, the average mortgage costed about $190,177 and 11,708 mortgage loans were recorded by the end of the year, a four percent increase from 2017.
In the town of Collierville, there were 990 mortgages, all averaging around $319,805, which is the most residential loans in Tennessee in 2018.
Retail & Multi-Family Property Sales Increase
Retail and multi-family property type sales increased by 129% and 83% in just this past year. Other property types dipped down a bit with their sales--industrial sales decreased by 57%, office property went down 29%, and vacant land dipped down 19% since November 2017.
The biggest achievement in purchases for commercial space was a 75,000 square-foot office complex located in Southeast Shelby County. The property sold for $11.1 million at the end of November to an out of town company stationed in California.
Analysis within residential foreclosure dipped down to significant lows this year, which is a positive thing. There were 1,294 documented foreclosures in 2018 compared to 1,638 in 2017.
According to the Tennessee Housing Development Agency, in 2017 the average new home sale was $358,545, and in 2018 it had increased to $369,223
In relation to building activity and new housing in 2018, there was a slight decrease in new housing sales, just at 7%. 835 new houses were sold compared to 896 in 2017.
The company Regency Homebuilders built the most new homes in Shelby County this year with 13 documented permits and 11 of those 13 being sold at an average price of $420,032. The towns of Arlington and Lakeland had the highest number of new permits with the average price of $306,911.
What to Expect in 2019
In 2019, you can expect to notice mortgage rates and the average home sales price rising due to the growing absence of feasible housing inventory. If you’re thinking about investing in property in Memphis, now is a great time to take advantage. Reedy and Company has been in the real estate business in Memphis since 2006, and manages property in the Memphis area. Let us know how we can help with all your real estate needs.