August Residential Real Estate Update

Sales were down for the second consecutive month. August closed with 1,125 reported home sales, down 13% from the prior year.


Average home sales prices fell as well to $129,754, down 1% from July and down 5% from August 2009.


New home sales were down 24% from the same month last year with 74 recorded for the month and an average sales price of $222,873.


Bank Sales accounted for 38% of the total home sales for the month and averaged $60,386.


466 foreclosures were reported, down 11% from August 2009 but average foreclosure amounts were up 17% to $85,547.


Adding to the decline of average home prices and property values are foreclosure amounts that are increasing in value and bank sales that are 30% below the average foreclosure amount.


Fannie Mae, who is consistently the top seller in Shelby County sold 108 properties in August with an average sale amount of only $42,243. In the same month of 2009, their average sale amount was $50,599 and in August 2008 it was $71,633. Investors both in and outside of Memphis are taking advantage of these extremely low prices.


Year-to-date, total home sales are now down 2% from the same period in 2009 however average home sales prices are up 2% and total sales revenues are relatively equal. New home sales are up 8% compared to the first 8 months of last year and bank sales are down 14% during this same period compared to 2009.


High unemployment rates, low consumer confidence and low appraisals are no match for the historically low interest rates.