The drop in sales from bank foreclosure listings in the Memphis area in November showed that the Shelby County housing market is on its way to recovery and stabilization, according to analysts and based on sales data from research firm Chandler Reports.
In November, total homes sales by banks dropped to 383 units, a decrease of 16 percent from 458 units in November last year and a decrease of 21 percent from 484 units in October. Total sales volume was $23.3 million, marking a drop of four percent from $24.4-million total sales in November last year and a 23-percent decrease from the $30.1-million sales in October.
The average sales price for banks was $60,992, an increase of 14 percent from the $53,277 average price in November last year but a drop of two percent from the October average price of $62,254.
In contrast to the weaker sales performance of bank foreclosure listings, total sales by nonbanking institutions soared by 47 percent to 771 units in November, compared to the 525 units sold in November last year. The sales figure however was lower by four percent than the 806 units sold in October.
The average price for nonbank house sales in November was $156,955, a six-percent drop from $166,429 last year but a slight increase from the October average price of $156,088.
Total sales volume by nonbanks was $121 million, marking a jump of 38 percent from the November 2008 sales volume of $87.4 million but a decrease of four percent from the October sales total of $125.8 million.
The total of bank sales and nonbank sales also increased, climbing up by 17 percent to 1,154 units from the 983 units sold in November last year. The sales figure was 11-percent lower than the total sales of 1,290 units in the previous month, but the stronger year-over-year performance was a good indicator, according to analysts.
The average sales price in November was $125,086, marking a 10-percent jump from the November 2008 average of $113,709 and a three-percent jump from the $120,882 average in October. Total sales volume reached $144.3 million, marking a 29-percent jump from the November 2008 sales of $111.8 million.
According to Glenn Moore, brokerage owner and newly-elected president of the Memphis Area Association of Realtors, the increase in nonbank sales and the drop in sales from bank foreclosure listings showed that the Memphis market is now able to absorb foreclosure properties.
