06/04/2020
Real Estate Update: May 2020
Chandler Reports, a division of The Daily News and the most trusted source in real estate, releases the latest installment of the "Pulse Report", a publication to keep you informed of local market trends for Memphis and Shelby County.
Home Sales
Shelby County home sale activity fell 21% in May with 1,294 home sales recorded compared to 1,628 home sales recorded in May 2019.
Despite slower home sale activity over the past two months, home sale prices continue to rise. Average home sale prices were up 5% in May to $194,619 compared to last year's average home sale prices of $185,733.
The total sales volume for the county dropped 17% to $252 million in May compared to last May with a total sales volume of $302 million.
The median sales price was $160,000, up 10% from last year.
35% of home sales recorded in May were valued under $100,000.
Home sales valued over $300,000 were down 4% in May with 272 sales recorded compared to 282 last year.
There were 4 home sales over $1M for the month compared to 6 sales over $1M recorded in April 2019.
Through the first five months of the year, the number of home sales recorded is down 7% and average sale prices are up 11% compared to the same time period in 2019.
Commercial Sales
Commercial sales for April fell 31% with 65 sales recorded for the month totaling $131M compared to 94 sales recorded in April 2019
totaling $112M.
Property Type # Sales-04/20 # Sales-04/19 % Change
Industrial 11 8 +38%
Vacant Land 9 25 -64%
Multi-Family 11 11 0%
Office 12 12 0%
Retail 14 8 75%
The largest commercial transaction recorded in April was the $19M sale of a trucking company and warehouse located at 5707 East Holmes Road in Zip Code 38141. The sale was a combination of 3 parcels containing 111 acres along with a 27,982 square foot warehouse transferred on April 30th to SFG NL IMC Landlord Memphis from Mark H. George Trust and Melinda M. George Trust.
Residential Foreclosure Analysis
With the current foreclosure moratorium still in place, foreclosure activity fell 88% in May with 11 foreclosures recorded for the month compared to 88 recorded in May 2019.
Of the properties foreclosed, the average foreclosure amount was $60,609 and the average tax appraisal value for the properties was $76,182.
The City of Memphis recorded the most foreclosures for the month with 9 total averaging $63,566.
There were 26 foreclosure notices published in May, down 77% from 114 notices in May 2019.
New Housing & Builder Activity
New home sales were down 18% in May with 45 sales recorded for the month compared to 55 sales last May.
Average new home sales prices rose 7% for the month to $426,856 compared to $397,782 in May 2019.
New home starts for April 2020 fell to 63 permits filed for the month averaging $378,447 compared to 77 filed in April 2019 averaging $314,904.
The Collierville area (38017) claimed the most new home permits with 34 recorded averaging $454,655.
The top builder was Regency Homes with 16 new home permits recorded for the month.
Mortgage Trends & Lending Analysis
Residential mortgages filed at the time of sale were down 20% in May with 872 loans recorded for the month compared to 1,089 recorded in May 2019.
The average mortgage amount was $214,987, with an average sales price of $240,393, making the average loan to value ratio 89%.
The Lakeland/Arlington area (38002) had the most residential loans recorded at the time of sale with 68 mortgages averaging $307,703.
The top lenders for May based on the total number of residential
mortgages filed at the time of sale were Community Mortgage Corp. with 68 loans, Pinnacle Bank with 68 loans as well and BancorpSouth Bank with 33 loans.
Fayette & Tipton County Market Trends
Fayette County home sales activity was down 10% in May with 82 home sales recorded for the month compared to 91 recorded in May 2019. However, average home sales prices were up 8% from last year to $276,282. Oakland (38060) recorded the most home sales for the month with 34 total averaging $254,632.
Through the first five months of the year, the number of home sales recorded in Fayette County is up 18% and average sale prices are down 5% compared to the same time period in 2019.
Tipton County home sales fell 32% in May with 71 sales recorded for the month compared to 105 recorded in May 2019. Average home sales prices were up 13% for the month to $194,312. The Atoka area (38004) recorded the most home sales for the month with 18 sales averaging $280,130.
Through the first five months of the year, the number of home sales recorded in Tipton County is up 8% and average sale prices are up 6% compared to the same time period in 2019.
