Memphis/Mid-South 2019 Q3 Market Update
Memphis/Mid-South Real Estate Market Update
2019 Quarter 3
An impressive streak of sustained activity made for a strong Quarter 3. The Memphis/Mid-South market is now nearly even year-over-year. Join us as we dig into the details.
What are the numbers?
Current Active Inventory at 4,213
After an increase from June to July, Active Inventory fell each month of Q3
Average Sales Price up 5.2% in September
YTD Average Sales Price up 3.1%
Total Units up 6.2% versus September 2018
YTD Total Units down < 1%
Current interest rates around 3.6%
What does this mean to you?
We are beginning to see the seasonal decline in Inventory. There were 1,284 pending sales and 4,213 active listings as of September 16th. Using the absorption rate, you would say that there are just over 3 months of inventory on the market. As fewer listings come onto the market and buyer activity remains strong in Q4, we anticipate the overall inventory to decrease in the coming months. This is typical seasonality.
Q3 was especially kind to home sellers. While the overall Average Sales Price was up 5.2% versus 2018, the existing home market was up even more - 7.2%. If you’ll recall from Q2, the market struggled in the first half of the year to beat 2018 numbers, and we are now soaring past that. The YTD Average Sales Price is up 3.1% overall. Falling interest rates are keeping affordability at an all-time high. Good news for everyone!
Year-over-year Total Sales Units were up in each month of Q3. At the end of June, our overall YTD Total Sales Units were down 2.7%. While it was not yet a concern, we did mention it as something to watch since falling interest rates had not yet produced an increase in buyer activity. It would appear now that the strategy is beginning to pay off. With increased activity in July, August, and September, we are now at 14,882 Total Sales Units for the year, which is just 44 Units behind 2018’s pace.
Simply put, it was a strong Quarter 3 for the Memphis/Mid-South real estate market. The increase in new listings coupled with the high affordability allowed the market to remain healthy. Demand is sure to remain high, so as some sellers pack it in for the holidays, we anticipate a less active Quarter 4. Banks are eager to increase rates, and we will see if the market accepts a departure from historic lows. Be sure to subscribe to our newsletter in order to stay informed.
Real estate planning always boils down to your unique goals and challenges. If you need to talk to a professional about the specifics of how today’s market impacts you, give us a call today.
Want some context on these numbers? Check out our Market Indicators series.