A Daily Shot of News

Like most Tennessee real estate markets, Memphis continues to struggle as a result of the economic recession that began in 2008.  Many experts are unsure when the real estate market will be ready to rebound into a full recovery since most believe the Memphis real estate market has not yet hit bottom.  Many believe that the main factor influencing the success of the Tennessee real estate markets is the affordability of housing, given that most of the Southeastern Tennessee real estate, which is a much less expensive market than the rest of Tennessee, seems to be fairing the best during these troubling economic times.

According to the Memphis Business Journal, jumbo real estate loans seem to be the main sign of the negative housing indicator in most Tennessee real estate markets.  Jumbo mortgages, which are loans above $417,000, have declined by more than 70 percent according to numerous real estate agencies.  Many markets are also reporting the the sales of properties priced above $400,000 are basically at a standstill.  Germantown has reported that it has a 41 month supply of properties valued above $500,000 based on the current sales rate in the area.  The real estate in Memphis has also experienced a 58 percent decline in sales of homes priced at $400,000 and above and a 32 percent decline in sales compared to the first quarter of 2008.  This has also given way to the 36 percent decline in home listings that many real estate agencies in Memphis are reporting.  The 36 percent of residential listings that have experienced a sales price reduction in September of 2009 puts Memphis at the top of the list of the 50 largest U.S. Cities.

However, The Daily News in Memphis has reported a more positive outlook on the real estate in Memphis due to the recent number of high-dollar real estate investments made in the residential, commercial, and industrial sectors.  Despite several million dollar deals such as the purchase of the Wyndridge Apartments by Resource Real Estate Inc. For $9.5 million, accounting for the largest commercial activity during the month of September, Memphis real estate sales are still at levels lower than that of 2008.  Sales in September averaged $660,078, down 13 percent from $758,789 the previous year.  However, September’s sales were up 17 percent from the $563,925 in the month prior to that.  Nevertheless, it seems that there is still no sure sign that the Memphis real estate market will consistently improve in the coming months.