Memphis/Mid-South 2018 Q2 Market Update
Memphis/Mid-South Real Estate Market Update
2018 Quarter 2
Boy, it’s hot out here! Sellers are loving low inventory, and buyers are loving the affordability. That’s a winning combination! Learn more in this market update.
What are the numbers?
We currently have 3 months of inventory
A balanced market is 5-7 months
We’re in a “seller’s market”
Total home sales are up 1.4% compared to this time last year
Average sales price for July ‘18 > July ‘17 by 7.4%
Interest rates are around 4.5% and rising
What does this mean to you?
Low inventory for sellers means you are competing against fewer listings. A balanced market is typically 6 months of inventory, so at our current 3 months of inventory, we’re at around half of what balanced market would be. When supply (or, the number of homes for sale) can’t meet demand (or, the number of buyers looking to purchase a home), prices rise.
Buyers, you shouldn’t be discouraged by low inventory. While prices are rising (see average sales price) due to the low inventory, interest rates rising means housing affordability may be as high as it will be for the foreseeable future.
It’s the summer, and that’s always a great time of year for residential real estate. The combination of high sales prices and high affordability makes it a great time for the average buyer or seller. What’s more important is the micro-market. Sellers, when did you buy and how much equity do you have currently? Are external factors like new construction going to affect that soon? For buyers, you really need to understand the market to be able to say yes quickly in this environment of low inventory. Call an expert today, and let’s take a look at your unique situation.