We’ve reported before that Memphis property sales have been increasing consistently and according to Q2 reports, this increase has continued. Experts are predicting that it could be the end of the Memphis real estate market crisis.
According to figures researched by the Memphis Area Association of Realtors there was a 6.75 month supply at the end of July 2012 vs. an 8 month supply at the end of 2011. Pending sales also show a healthy increase of 25% in June 2012 compared to June 2011.
Why are sales in the Memphis area picking up?
Experts believe that part of the reason is lower interest rates on mortgages. The average rate for a 30 year mortgage is now just 3.55% and rates for 15 year mortgages it is on average 2.83%. This has allowed many home owners to upgrade and for investors in USA real estate to create portfolios whereby their properties can be paid off in a matter of years.
Demand is far outstripping supply of Memphis property too. Realtors are reporting many properties in Memphis selling within a matter of days of being listed and bidding wars occurring. A number of areas are seeing this too, including Detroit and Atlanta.
The general consensus is that in 2014 a clearer picture of the future of American real estate will become apparent. Growth will be slow for 2012 and 2013 and within this period there will be highs and lows depending on inventory. But in 2014 normality to the American housing market is expected to return- and stay.
Source: Memphis Daily News