Here is a quick recap of the happenings in the Memphis real estate scene for the past week. It certainly has been a great week with lots of positive news.
MAA Merger to Boost Memphis jobs Figures
The recent Merger between MAA and Colonial properties which sprung the Memphis Real Estate giant into one of the biggest players in the apartment rental market nationally is expected to have a trickle down effect on the local job market . The decision to station the joint corporate headquarters of the newly merged entity will create a few direct jobs according to the company’s CEO Eric Bolton. Most of the opportunities will however be available in the lower-level management and clerical positions.
Memphis Experiencing High Dollar Sales According to Latest Report
Latest data by the Memphis Area Association of Realtors shows that sales in the high-end segment of the market grew considerably over the same period in the last year. Many Memphis realtors have sold out homes in the $1 million to $1.5 million value range. The median sales price for family homes has also increased by 20% over the same period last year. In May last year, the median sales price for homes in the Memphis real estate market was $84,900 but this has since increased to $102,000 according to the figures for May this year.
Data from Chandler Reports indicate that while there has been little change in home prices in the high-end market segment, the number of sales has increased by 50%. The growth of the average sales price over the past year was however more subdued with this figure increasing by 10% while the median sales price for residential homes increased by 17% over the same period. Memphis Realtors believe the prospect of higher mortgage rates is luring the “fence sitters” to dive right in and lock in the low interest rates.
Downtown Memphis Apartment Properties Attract Two Out-Of-Town Buyers
The 361-Unit Fielder’s Square Apartments in Downtown Memphis have been acquired by two out-of-town companies-the Toronto based Avison Young and Alabama’s LMS Real Estate Investment Management LLC. The two companies currently have the highly visible real estate under contract and are expected to close the sale by next month. LMS specializes in the acquisition of multi-family properties that are based in the secondary and tertiary markets while Toronto’s Avison Young has interests in full-service commercial real estate company and is one of the biggest players in North America. The two companies are expected to pump between $4 and $5 million in the Fielder’s Square Apartments after closing the sale.
Fanny Mae: 40% of Americans Say It is a Good Time to Sell
A survey by Fanny Mae in May on the consumer confidence in the real estate market indicates 40% of Americans believe it is a better time to sell, indicating a 10-point jump in consumer confidence over the last month. A similar survey carried out in April had yielded a confidence level of 30%. A survey carried out over the same period last year had yielded 16%.
Shelby County Sees a 5% Increase in Building Permits
The number of building permits issued has increased by 5% over the same period last year according to building permit data from Shelby County. Some 105 building permits were issued in May 2013 as compared to 100 over the same period last year. The depressed growth could be due to soggy conditions which make construction difficult and the diminishing of prime plots in Memphis.