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Home Sales Prices Remain Flat

March 2nd, 2012

An article from Sarah Baker of The Daily News

January home sales posted an 8 percent increase compared to the same month a year ago as average pricing remained flat, due in large part to the market’s abundance of foreclosures.

Shelby County saw 923 home sales last month, compared to 855 in January 2011 and 880 in December, according to real estate information company Chandler Reports, www.chandlerreports.com.

The majority of the increase in overall sales was due to bank (or foreclosure) sales, which made up 31 percent of total home sales. There were 278 sales recorded in that category during January, compared to 236 a year ago.

Carol Lott, president of the Memphis Area Association of Realtors, expects 2012 to continue to boast higher year-over-year sales totals – whether those sales are at arm’s length or not.

“I believe we will continue to see higher sales totals,” Lott said. “Some of those sales totals will continue to include foreclosures, because in good markets and bad there will always be foreclosures, but you are starting to see several normal sales, too.”

Bank sales continued to create downward pressure on the county’s overall average home sales prices. Bank sales averaged $64,355, compared to a total average home sales price of $109,515. Bank sales prices represented a 6 percent decrease from January 2011 and an 11 percent plunge from December.

But before the county sees any kind of up-trend in pricing, unit sales will pick up, said Joe Spake of InCity Realty.

“We won’t see a boom but a very gradual increase in prices over the next few years, and that will continue to be impacted by the (real estate-owned) market,” Spake said. “I think it will be years before we can honestly say the real estate market is ‘stable.’”

The average price for nonbank (or traditional) sales was $128,855, up 4 percent from January but down 8 percent from December. There were 640 nonbank sales last month, a 3 percent increase from January 2011.

Join us on Thursday, March 15th for the RISE Foundation’s monthly meeting where we will review our detailed foreclosure analysis market trend reports.

RESPONSIBLE LENDING COLLABORATIVE

MARCH 15TH

3:00 pm—4:45PM

1548 Poplar – Training Room 

FORECLOSURE TRENDS: IS THE WORST BEHIND US?

Special Guest: Wendy Greenlaw, Chandler Reports

 

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