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Michael Bellaire's Blog

By Michael Bellaire | Broker in Memphis, TN
  • Memphis Area Real Estate Information

    Posted Under: Market Conditions in Memphis, Home Buying in Memphis, Home Selling in Memphis  |  September 17, 2011 8:02 PM  |  1,339 views  |  No comments

      MICHAEL'S MEMPHIS MINUTES

     

     

    Here we are, Labor Day has passed and summer is drawing to a close. The kids are back in school, most vacations are pleasant memories and lots of pictures to reminisce about, and show family and friends. Now, we begin to focus on football, fall and maybe a little bit more about what's going on at work and in our lives.

     

    With the continued uncertainty in the economy, continued high unemployment, and what seems to be an unending onslaught of negative news, businesses, consumers, people and families in general are apprehensive and cautious about how to spend their money, and what might come next.

     

    When it comes to Real Estate, those thoughts and decisions are no different.

     

    For Buyers however, they see a continued Bright Side in all of this apprehension and confusion.

     

    Banks are lending money, despite what you hear in the media. In fact, many Banks are looking for people to loan money to.

     

    Although the extremely relaxed lending policies of the mid 90's and 2000's no longer exist, the loan policies today are extremely realistic and reasonable. Most lenders only require borrowers to have a minimum 640 credit score to qualify for a loan, with perhaps a few that will still work with a 620 score.

     

    Borrowers debt to income ratios are running from 28-45% to qualify for a mortgage loan, and these have been historically reasonable ratios.

     

    Although there's been a lot of talk about increasing Down Payment Requirements, this has not happened yet. Buyers are still able to buy a home with a 3 1/2% down payment.

     

    THAT'S RIGHT, A 30 YEAR FIXED RATE LOAN WITH ONLY A 3 1/2% DOWN PAYMENT, and some assisted programs are still available with no down payment and 100% financing.

     

    INTEREST RATES  on these loans are STILL AT HISTORIC LOW LEVELS. Although they held in the low 4% range for most of the last 2 quarters, they dipped a couple of weeks ago to the high 3% and have now settled into the 3.75 to low 4% range currently. These rates are UNBELIEVABLE!

     

    If you're a Buyer, you should seriously consider a 30 year fixed rate loan at around 4% with only a 3 1/2% down payment and get off the fence and get out and find that home you've been dreaming about. This is historic, and no one can tell you how long this will last.

     

    There's a good inventory of homes available in all areas of Memphis and the surrounding communities, and NOW IS DEFINITELY A GREAT TIME TO BUY!

     

    FOR SELLER'S, it's a little tougher, but, homes are selling, banks are lending and Buyers are Buying.

     

    Pricing, length of time necessary to sell, and negotiating issues still largely depend on your specific location and condition of your property, but homes are selling.

     

    THIS IS NOT THE TIME TO TEST THE MARKET, you have to PRICE YOUR HOME TO THE MARKET!

     

    If you want to get the maximum price available, make sure your home is in it's best possible condition. Make sure it's ready to show prospective Buyers, and easily available for those Buyers to come and tour your home for a possible purchase decision. Remember, if your home can't be shown, it can't be sold.

     

    Anticipate some reasonable give and take negotiations, anticipate requests for you as a seller to pay some or all of the Buyer's closing costs, expect requests for you to pay for repairs. Most Buyers aren't expecting or aren't interested in giving you a good price for your home, and then having to repair it besides. If your home needs repair or upgrades, you should do them before you put it on the market or, price it accordingly.

     

    Expect that once a serious offer is made, you can expect to close and be out of your home within 45-60 days.

     

    Well, enough of that. What you really want to know is what's going on in the Memphis Market!

     

    Well, here it is, HOT OFF THE PRESS, THE QUICK STATISTICS, THE MARKET SNAPSHOT of what happened in the Memphis Real Estate Market in August 2011 and compared to August 2010!

     

       CLOSED SALES 8/01/2011-8/31/2011

     

     

    Collierville - August 2011, 65 homes sold, the average type of home had 4 bedrooms and 3 baths, was approximately 3,499 sq.ft., had an average list price of $339,374.00 and an average sale price of $326,542.00. The average price per sq.ft. $93.53 and the average cumulative days listed on the market was 115.

    For August 2010 in comparison, 62 homes sold, the average type of home had 4 bedrooms and 3 baths, was approximately 3,584 sq.ft., had an average list price of $395,657.00 and an average sale price of $370,344.00. The average price per sq.ft. $99.48 and the average cumulative days listed on the market was 216.

     

    GERMANTOWN - August 2011, 51 homes sold, the average type of home had 4 bedrooms and 2+ baths, was approximately 3,316 sq.ft., had an average list price of $335,124.00 and an average sale price of $317,534.00. The average price per sq.ft. $93.66 and the average cumulative days listed on the market was 127.

    For August 2010 in comparison, 45 homes sold, the average type of home had 4 bedrooms and 2+ baths, was approximately 3,471 sq.ft., had a average list price of $355,361.00 and an average sale price of $335,758.00. The average price per sq.ft. $96.17 and the average cumulative days listed on the market was 107.

     

    BARTLETT - August 2011, 59 homes sold, the average type of home had 4 bedrooms and 2+ baths, was approximately 2,450 sq.ft., had an average list price of $177,786.00 and an average sale price of  $169,845.00. The average price per sq.ft. $68.40 and the average cumulative days listed on the market was 168.

    For August 2010 in comparison, 50 homes sold, the average type of home had 4 bedrooms and 2+ baths, was approximately 2,479 sq.ft., had an average list price of $179,017.00 and an average sale price of $172,714.00. The average price per sq.ft. $69.86 and the average cumulative days listed on the market was 117.

     

    ARLINGTON - August 2011, 20 homes sold, the average type of home had 4 bedrooms and 2+ baths, was approximately 2,349 sq.ft., had an average list price of $198,625.00 and an average sale price of $191,640.00. The average price per sq.ft. $80.82 and the average cumulative days listed on the market was 92.

    For August 2010 in comparison, 21 homes sold, the average type of home had 4 bedrooms and  2+ baths, was approximately 2,789 sq.ft. had an average list price of $236,421.00 and an average sale price of $230,630.00.  The average price per sq.ft. $81.82 and the average cumulative days listed on the market was 196.

     

    LAKELAND - August 2011, 21 homes sold, the average type of home had 4 bedrooms and 2+ baths, was approximately 2,841 sq.ft. had an average list price of $249,348.00 and an average sale price of $241,927.00. The average price per sq.ft. $84.17 and the average cumulative days listed on the market was 122.

    For August 2010 in comparison, 19 homes sold, the average type of home had 4 bedrooms and 2+ baths, was approximately 2,696 sq.ft. had an average list price of $240,899.00 and an average sale price of $231,956.00. The average price per sq.ft. $85.53 and the average cumulative days listed on the market was 159.

     

    MILLINGTON - August 2011, 12 homes sold, the average type of home had 3 bedrooms and 1+ baths, was approximately 1,741 sq.ft. had an average list price of $92,369.00 and an average sale price of $85,265.00. The average price per sq.ft. $46.82 and the average cumulative days listed on the market was 100.

    For August 2010 in comparison, 10 homes sold, the average type of home had 3 bedrooms and 1+ baths, was approximately 1717 sq.ft. had an average list price of $77,910.00 and an average sale price of $74,840.00. The average price per sq.ft. $43.35 and the average cumulative days listed on the market was 84.

     

    GREATER CORDOVA & EADS AREAS - August 2011, 99 homes sold, the average type of home had 3 bedrooms and 2+ baths, was approximately 2,177 sq.ft. had an average list price of $140,169.00 and an average sale price of $134,497. The average price per sq.ft. $59.95 and the average cumulative days listed on the market was 155.

    For August 2010 in comparison, 104 homes sold, the average type of home had 4 bedrooms and 2 1/2 baths, was approximately 2,439 sq.ft. had an average list price of $166,167.00 and an average sale price  of $158,338.00.  The average price per sq.ft. $62.92 and the average cumulative days listed on the market was 116.

     

    FAYETTE - August 2011, 23 homes sold, the average type of home had 3 bedrooms and 2+ baths, was approximately 2,463 sq.ft. had an average list price of $222,743.00 and an average sale price of $210,039.00. The average price per sq.ft. $79.46 and the average cumulative days listed on the market was 257.

    For August 2010 in comparison, 30 homes sold, the average type of home had 3 bedrooms and 2+ baths, was approximately 2,370 sq.ft. had an average list price of $193.893.00 and an average sale price of $187,144.00. The average price per sq.ft. $74.46 and the average cumulative days listed on the market was 161.

     

    TIPTON - August 2011, 40 homes sold, the average type of home had 3 bedrooms and 2 baths, was approximately 1,844 sq.ft. had an average list price of $133,196.00 and an average sale price of $129,929.00. The average price per sq.ft. $69.64 and the average cumulative days listed on the market was 144.

    For August 2010 in comparison, 32 homes sold, the average type of home had 3 bedrooms and 2+ baths, was approximately 1,952 sq.ft. had an average list price of $136,889.00 and an average sale price of $132,226.00. The average price per sq.ft. $67.06 and the average cumulative days listed on the market was 152.

     

    GREATER MEMPHIS - August 2011, 420 homes sold, the average type of home had 3 bedrooms and 1+ baths, was approximately 1,728 sq.ft. had an average list price of $105,920.00 and an average sale price of $119,197.00.* The average price per sq.ft. $57.77 and the average cumulative days listed on the market was 111. (* not a mistake, the actual sale price number from the Memphis MLS).

    For August 2010 in comparison, 408 homes sold, the average type of home had 3 bedrooms and 1+ baths, was approximately 1,674 sq.ft. had an average list price of $89,984.00 and an average sale price $83,906.00. The average price per sq.ft. $42.38 and the average cumulative days listed on the market was 91.

     

    Well, there you have it. A solid and broad overview of the Memphis Area Real Estate Market for August 2011 and comparison year 2010. I sincerely hope this helps you by keeping you informed about what's going on in today's local market place.

     

    If you think you might like some information that's more specific to your immediate area, neighborhood or your home, please feel free to contact me and I'll do what ever I can to provide you with the type of information or assistance you feel you might require.

     

    You or someone you may know, may also want to visit these sites:

     

    http://www.MemphisAreaHomeValues.com

    http://www.WestTennesseeHomeValues.com

    http://www.FayetteCountyHomeValues.com

     

    Simply fill out the form, and I'll send you a Market Snapshot of what's happening in your area. Thanks for your time and your interest.

     

    And, if you think you might want to see what type of home and loan you could pre-qualify for, you might want to contact a local expert that you can trust to give you all the information you need, straight forward and no horsing around. He is Michael Wiegert, Vice President, Renasant Bank, Mortgage Lending. You can call him at (901) 684-0293, or e-mail him at MWiegert@renasant.com.

    Always My Best,


    Michael Bellaire, Broker, ABR
    (901)757-5742
    (901)387-8349
    http://www.HomesForSaleMemphisTN.com
 
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