Memphis/Mid-South 2019 Q1 Market Update
Memphis/Mid-South Real Estate Market Update
2019 Quarter 1
Just like the foliage, we have a budding real estate market. Despite increases in new listings, inventory is still down. Let’s take a look at that and more in our most recent Memphis/Mid-South Market Update.
What are the numbers?
YTD average sales price almost dead even - .1% down
Average Days on Market = 59
December DOM = 54
50% YTD sales on market 30 days or fewer
Current interest rates hovering around 4%
March pending sales at 1,305 properties
March active inventory at 3,806 properties
What does this mean to you?
Inventory is still low, but it is on the rise. Despite an increase of 6.6% new listings from February to March, our current inventory sits under 3 months, using the absorption rate. The 4,056 active listings is a difference of 6 properties from our December inventory. That is typical for this time of year. As sellers bring their homes to market, buyers are ready to put them under contract.
This rapid market is further evidenced by a look at DOM. At first glance, you see our average days on market is 5 days longer than it was in December. However, of the 2,795 YTD sales, 1,388 properties were on the market 30 days or fewer. Sellers should be receptive to the market if they begin to approach the 45-day mark.
The interest rate for a 30-year fixed mortgage at one point got up to 4.75% in Q1. However, they are back down to around 4%. What does this mean to you? Affordability is still high. It also means that banks would prefer to continue interest rate hikes. Thus, affordability might be as good as it will be for some time if you don’t act now. Rising sales prices and interest rate increases might price you out of the market before you know it!
Lastly, the micro markets that are driving sales: 3-bedroom homes priced $180,000-$250,000 accounted for nearly 20% of our total sales, as did 4-bedroom homes priced $200,000-$400,000. This is our market, and these are the homes buyers want. If you find yourself in that category - a first time home buyer looking for something around $200,000, or a move-up family looking around $300,000 - get your financing in order so that you can move quickly on your next home.
Want some context on these numbers? Check out our Market Indicators series.