Thriving with its distinctive southern charm and a music scene that’s very much alive, Memphis is an attractive city building its economic momentum. A powerful stimulator of the local economy, the Memphis real estate market is gaining increased interest, not only from prospective homebuyers, but also from real estate professionals and investors. Here, you’ll discover detailed insights and advice on taking advantage of Memphis’s real estate prospects.
Current State of the Memphis Real Estate Market
In 2020, Memphis boasted a rising housing market despite the global pandemic. Let’s explore the industry’s current conditions more closely.
Housing Demand and Supply Equilibrium
Presently, Memphis is experiencing a steady increase in demand for housing units. Redfin’s data from March 2021 revealed that nationally, homes are getting multiple offers with an average sale rate of about 1% above the list price. However, in Memphis, properties last an average of 35 days on the market before closing. This fact doesn’t make it easy for you to operate in a buyers’ or sellers’ market, but instead places you in an equilibrium where a well-informed business can thrive.
Median Home Prices and Trends
The median home price in Memphis is well under the national average, making it a more accessible city for home ownership. According to Zillow, as of January 2021, the median home price in Memphis was about $101,682. Mono-chart evidences show that this number will likely increase by around 5% in the coming year. This suggests it’s time for your strategy to account for these promising trends.
Understanding the Memphis Home Buyer
Understanding the ‘buyer persona’ is key to amplifying your real estate business impact in the Memphis market. Let’s explore what might motivate prospective homeowners here.
Who is the Typical Home Buyer in Memphis?
Most of the Memphis home buyers look for a home for personal use rather than as investments or rental properties, Zillow suggests. Another feature typical of Memphis home buyers is their young age. With a median age of 35.6, compared to the nation’s median of 38.2 according to Census Bureau data, a substantial percentage of potential homeowners is formed by millennials.
What Type of Homes Are They Looking For?
Data from Realtor suggests a significant interest in single-family detached homes in Memphis. Popular details include an open floor plan, moderate-to-large kitchen, and at least three bedrooms. Additionally, mature neighbourhoods with stable property values and excellent amenities generate interest among potential buyers.
Investment Opportunities
The rising housing market in Memphis is opening windows of opportunity for investors. Here is where your expertise can come in as a helpful guide for the investor clientele.
Cash-on-Cash Returns
Average cash-on-cash return is a factor that makes Memphis attractive for investors. With an average return of nearly 3%, Memphis not only beats the national average, but also soars above peers such as Dallas and Nashville, according to resources from Mashvisor, an investment property database.
Rental Market Predictions
Your real estate business should stay tuned to Memphis’s rental market. Zumper’s November 2020 report shows that Memphis counterbalanced national trends by experiencing a year-over-year rental price increase of 15%. Hence, looking into investment properties could be a winning strategy.
Recommendations for Success in Memphis’ Real Estate Market
Now that you’ve garnered vital insights into Memphis’s real estate climate, here are actionable tips based on this data.
Remember, location is crucial. Familiarize yourself with trying to sell in popular areas such as Country Wood and Germantone FYN. The better insights you generate about different neighbourhoods, the more useful advice you’ll deliver to home buyers.
Next, emphasise certain house features to homebuyers. Home offices have emerged as a Valuable addition considering the grown trend of remote working.
Further, highlighting affordability while maintaining good property condition, could appease financially cautious millennials.
Lastly, but equally importantly, assist investors by strategizing for appealing returns. Marry statistics like those on Memphis’s rental market, with a detailed knowledge of individual homes, and return expectations of the investor client.
Wrapping It All
Memphis’ positive indicators present a bright outlook for real estate professionals. Understanding the market and the potential buyers assists your growth and sway, positioning you ahead as an industry leader in the Memphis real estate market.