Memphis TN 2017 Housing Report and outlook on 2018
For those interested in the Memphis TN Real Estate Market:
2017 Year-End Update
Home Sales
For the second year in a row, average home sales prices in Memphis and Shelby County have reached a record high.
Average home sales prices topped $165,644 in 2017, up 5% from last year's record high of $158,463.
Total home sales volume reached it's highest level since 2006, and was the fourth highest amount ever recorded at $3.13 billion, up 13% from $2.78 billion in 2016.
In 2017 there were the most home sales recorded since 2007 with 18,877 sales, up 8% from 17,516 sales recorded in 2016.
Every ZIP code in the county had an increase in average sales price last year and 24 of 33 ZIP codes had an improvement over 2016 in the number of home sales recorded.
Over 7,500 home sales, 40% of all home sales, were by cash buyers meaning no mortgage was taken at the time of sale.
The median sales price for 2017 was $130,000, up 5% from 2016.
Home sales over $500,000 were up 28% from last year with 648 recorded for the year compared to 505 recorded in 2016. Home sales valued over $1M were down 6% from last year with 48 recorded compared to 51 in 2016.
-Data Source: Chandler Reports
As far as my outlook on 2018. Inventory is getting harder and harder to find for many investors. I am seeing a lot of newbies wanting to get started in the area. We are getting outbid frequently at the courthouse auctions. That being said with low supply come high demand. We are getting calls from investors all over the country/world wanting to buy rentals in Memphis most of our turnkey properties that we sell still fit "The 1% Rule" which is a great return compared to other markets. There is still a great affordability level here with average home prices at $165k.
I am bullish on 2018 real estate market here and feel home prices will continue to climb probably around the same as 2017 so around 4-7% appreciation. There will always be a demand for clean, safe and well managed rental properties in Memphis and with other markets being even more overpriced and oversaturated investors will continue to look towards Memphis for cash flow investment rental properties.
I am curious to see what other people think about 2018 market here in Memphis?