As per the latest data from the Chandler Reports Pulse Newsletter, the Memphis real estate market experienced notable shifts in both home sales and new housing activity during December and November, respectively.
December Home Sales:
Home sale activity in Shelby County witnessed a 17% decline in December, with 1,010 sales compared to 1,210 in December 2022. However, amidst this decrease, there was a noteworthy 4% increase in the average home sale price, reaching $247,957, indicating a positive trend in property values. The median sales price remained robust at $183,700, and 23% of recorded sales were valued under $100,000.
Sales of homes priced over $300,000 dipped by 17%, signaling a potential shift in market dynamics. Notwithstanding, the luxury segment remained active with 15 homes selling for over $1 million, demonstrating the continued demand for high-end properties. The year-to-date data revealed a 26% reduction in home sales, contrasting with a 3% increase in average sale prices compared to the same period in 2022.
November New Housing & Builder Activity:
November painted a similar picture in the new housing sector, with a significant 66% decrease in new home sales, dropping to 28 sales compared to 83 in November 2022. The average new home sales price experienced a modest 2% decline, settling at $509,975.
Arlington/Lakeland (38002) emerged as a focal point for new home sales, contributing 8 sales with an average price of $541,407. Leading the charge, David and Keith Grant secured 3 new home sales with an average price of $556,173.
However, the most striking trend was the 44% decrease in new home starts, with only 19 permits filed in November compared to 34 the previous year. The Arlington/Lakeland area dominated new home permits, recording 5 permits averaging $434,966.
Market Analysis and Outlook:
The 4% increase in average home sale prices in December signifies a positive trajectory for property values in Memphis. However, the 44% decrease in new home construction suggests a tightening inventory of new builds. Amidst this, Memphis Investment Properties (MIP) stands out with ongoing new construction projects and plans for more in 2024, potentially addressing the demand for new homes in the market. As outlined in the Chandler Reports Pulse Newsletter, these insights provide valuable guidance for investors and homebuyers navigating the dynamic Memphis real estate landscape.