Real Estate Marketing & Beyond
The house flipping market is coming back to life in Memphis. As all experienced real estate investors know, real estate goes through cycles and WHAT A CYCLE this last one has been. Fortunately, the new "normal" is returning. The median list prices for Memphis houses surged 5.19% in one month from March to April 2013 according to Realtor.com.
photo credit: thinkpanama via photopin cc
A Change in Pace for Memphis Real Estate
Simultaneous with rising listing prices is a decrease in total listings. Year on year, Memphis has experienced a 14.5% decline in total listings. This not only means the cost to invest in Memphis real estate is increasing, it simultaneously means that investors must move fast to lock down the best deals. The good news is that the tightening market with rising prices means there are plenty of energized buyers in the market for investors wanting to flip houses quickly.
With supply declining, currently it's important to watch the level of new construction coming onto the market. New construction of Memphis single-family houses saw a year on year increase of 34.3% compared to the national average increase of 25.6%. This is a solid indicator that contractors favorably view the future of the Memphis real estate market.
The foreclosure rate and real estate owned by lenders continues to decline in Memphis faster than the national average. This is another compelling indication that the inventory level will be tight for the foreseeable future.
Time to Invest
The only daunting news on the horizon is that interest rates are beginning to edge up from historic lows. In May, the average interest rate hovered around 3.55%. Still at very attractive rate but if it continues to inch upward it won't be long before first time buyers find monthly mortgage costs begin exceeding the tight standards imposed by lenders.
Whether you are new to real estate investing or a seasoned professional, data trends in Memphis all strongly indicate that now is the time to actively being investing. Truth be told, the best deals could have been had about nine months ago. Still, the market continues to rebound and the tight market will continue to drive dependable appreciation in home values. An astute investor will do well by closely watching for undervalued new listings and making very fast offers to secure the deals before others have the chance.
About the author: Brian Kline
