Memphis residential real estate market continues record year
20 November, 2021
The Memphis real estate market continued its blistering year despite a slowdown in October.
Data released by the Memphis Area Association of Realtors (MAAR) shows that there were 1,929 home sales in October, signaling an end to a strong summer, after 2,149 homes were sold in September.
The sales in October 2021 were 5% higher than the same month the year before.
Most of the activity in the market during October was on more expensive homes. The median sales price was $215,000, up 10.3% from a year ago; and the average sales price of $249,100 was up 3.0% from last year.
The average price was also higher than September’s average of $240,539. Both median and average prices were higher than the year-to-date median and average.
Larger homes were more likely to move in October. Houses with 3 or more bedrooms accounted for 86% of all sales during the month. Smaller properties — such as houses with fewer than 3 bedrooms, condos, or duplexes — accounted for the other 14% of sales that month. The October numbers are in line with yearlong trends.
Inventory continued to trickle down during the month, too going from 2,529 in September to 2,384 in October. While inventory recovered slightly in the late spring and early summer after hitting a low of 1,976 in February, the market has now returned to a downward trend in numbers of available homes.
New homes continued to be in lower supply but higher demand. Seventy new homes were sold, down 15.7% compared to a year ago, but the average sales price of $454,570 was 14.4% higher than 2020.
Prices continued to rise in nearly every local submarket, with less expensive markets seeing the sharpest increases.
Frayser saw 94 sales, down 6% from a year ago. But the neighborhood's average price spiked 45.9%, from $59,419 to $86,679. Raleigh/Covington Pike saw a 22.5% increase in sales and 39.2% increase in prices, from $105,041 to $149,229.
Only a select few wealthier markets saw average prices or median prices decrease. Out of those, only one saw both average and median prices drop: East Memphis had a 6.1% increase in sales from a year ago, going from 296 to 314. But the average price dropped from $266,185 to $257,596, and the median price fell from $194,095 to $190,000.
Data released by the Memphis Area Association of Realtors (MAAR) shows that there were 1,929 home sales in October, signaling an end to a strong summer, after 2,149 homes were sold in September.
The sales in October 2021 were 5% higher than the same month the year before.
Most of the activity in the market during October was on more expensive homes. The median sales price was $215,000, up 10.3% from a year ago; and the average sales price of $249,100 was up 3.0% from last year.
The average price was also higher than September’s average of $240,539. Both median and average prices were higher than the year-to-date median and average.
Larger homes were more likely to move in October. Houses with 3 or more bedrooms accounted for 86% of all sales during the month. Smaller properties — such as houses with fewer than 3 bedrooms, condos, or duplexes — accounted for the other 14% of sales that month. The October numbers are in line with yearlong trends.
Inventory continued to trickle down during the month, too going from 2,529 in September to 2,384 in October. While inventory recovered slightly in the late spring and early summer after hitting a low of 1,976 in February, the market has now returned to a downward trend in numbers of available homes.
New homes continued to be in lower supply but higher demand. Seventy new homes were sold, down 15.7% compared to a year ago, but the average sales price of $454,570 was 14.4% higher than 2020.
Prices continued to rise in nearly every local submarket, with less expensive markets seeing the sharpest increases.
Frayser saw 94 sales, down 6% from a year ago. But the neighborhood's average price spiked 45.9%, from $59,419 to $86,679. Raleigh/Covington Pike saw a 22.5% increase in sales and 39.2% increase in prices, from $105,041 to $149,229.
Only a select few wealthier markets saw average prices or median prices decrease. Out of those, only one saw both average and median prices drop: East Memphis had a 6.1% increase in sales from a year ago, going from 296 to 314. But the average price dropped from $266,185 to $257,596, and the median price fell from $194,095 to $190,000.
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