US Home Prices Gain Monumental Annual Increase in March

US Home Prices Gain Monumental Annual Increase in March rfinley@seodig… Wed, 05/19/2021 - 15:50

The latest development in real estate is that the U.S home sale price has gone up by 1.7% yearly, which brings it to an all-time high of $330,250. According to national property broker Redfin, this is the largest increment on record, which goes as far back as 2016.

In the weeks to come, the nation’s housing market will enter a period where comparisons to a year ago will intercept with a decline in home buying demands at the start of the Coronavirus pandemic.

Most housing demand measures will show significant year-to-year increases. We will provide more context about these measures in reporting new data as it becomes available.

Important U.S housing market facts during the four weeks ending March 14 includes:

• Asking prices of new houses in the market got to a new high rate of $350,972, which is 10% higher than a year ago.
• Pending home sales were also affected and went up by 21% year over year, the smallest recorded increase since August.
• New listings of homes for sale in the market went downhill by 17% from a year ago.
• Available homes for sale during the period fell by 42% from 2020, which is a record low rate. This is the most significant recorded decrease in the database, which goes back through 2016.
• A high rate of 57% of homes under contract got accepted within the primary fortnight on the market, which is above the 46% rate that occurred during the same time frame a year earlier. This is another record high since at least 2012 (as far back as our database for this measure goes). During the 7-day period, which ends March 14, 61% of homes sold in two weeks or less during this period.
• Also, the average sale-to-list price increased to 100.0%, which is 1.8 percentage higher than a year ago, a new record, and the first time since this data series began in 2016 that the four-week average has gone beyond 100% nationwide.
• For a 7-day time frame that ended March 14, requests for home tours and other homebuyer demands went up by 85% from the same period a year ago when the housing market was absolutely low due to the pandemic.
• Mortgage purchase applications rates soared high as 2% week over week (which adjusted by season) and then went up 5% from a year earlier (unadjusted) during the end of week March 12. For the week that ended on March 18, 30-year mortgage rates were at the highest level since June by 3.09%.

Times and facts in the housing market have indeed changed in the last year. Housing demand measures are changing, and newly listed homes are being purchased in decent time. No one knows if the market will change for better or good.

Are you ready to make an investment? Contact Reedy & Company today for more information on our property management services!

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Why Real Estate Investors Love Memphis

Why Real Estate Investors Love Memphis rfinley@seodig… Tue, 04/13/2021 - 13:47

Price is always a major factor to consider in real estate, and Memphis has been doing great in offering out-of-state investors an advantage in this regard, enabling them to invest in local homes for investment properties.

According to reports from the Memphis Business Journal, great homes in Memphis are getting huge offers when they hit the market and are often selling for more than the market price.

Although Memphis real estate is a booming market, other factors made it so, aside from price margins.

The city houses many attractive events like the Elvis’ Graceland, Blues Hall of Fame, superb BBQ, and gives visitors a taste of high-class hospitality. Nestled along the Mississippi River, you could have a tour around the river for a cruise or head out for one of the many Beale Street bars and restaurants.

This article highlights some of the reasons why Memphis is an amazing location to invest in rental property.

Population Growth

Memphis consists of a gross population that is majorly categorized with youths. This youthful concentration has kept the region growing at a scale of 4% for the last ten years. Memphis boasts almost 1.4 million inhabitants earning it the title of the 42nd largest city in the United States. The vast demographic in Memphis makes it a promising spot for real estate investors.

Job Market

The booming rate of the economy and job opportunities make it an attractive site for many. With many companies moving to a remote job structure, we're seeing a trend of moving away from major, coastal cities.

According to Bloomberg, the city of Memphis has been the number one metropolitan area for job creation over the past ten years, ranging from jobs on construction, transportation, ICT, politics, and business.

Real Estate Market

Statistics from WalletHub indicate that Memphis is the best area for the real estate market. These statistics detail the demand for houses and rental property, the influx of individuals into the city, and the shortage of homes makes it a great market for rental property.

Strong Renters’ Market

The low availability of homes fuels the strong margin on the rental property market compared to housing facilities' demand. The shortage of homes in Memphis allows out-of-state investors to put up homes for the rental market. As long as there is an attractive pump in the diversified economy of Memphis, an attractive labor market, and beautiful quality of life for residents and visitors, investments in rental property will always yield high returns.

Historic Price Changes and Housing Affordability

Experienced real estate investors make use of price margins, fluctuations and housing affordability to determine how well a rental property or asset will perform in a place over some time.

Affordability helps you understand if and how people will purchase these items or rent them, while studying the price index will help you to conclude how fast or slow it takes the market to rise or fall.

Quality of Life

Memphis ranks as one of the top 10 most affordable places to live while boasting amazing weather and culture. Nine months of patio weather, mild winter seasons, and average temperatures during Summer months, make Memphis an ideal area to live. 

 

Investing in Memphis begins with understanding the attractive potential returns that comes from doing so. Rental homes will be a lucrative opportunity in Memphis, Tennessee. If you're interested in learning more about investing in real estate in Memphis, contact our team today!

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Memphis Home Sales Up From 2019

Memphis Home Sales Up From 2019 rfinley@seodig… Wed, 02/10/2021 - 14:28

2020 was a lot to process, Coronavirus and other issues ensured that the economy flatlined. This has left many with questions, there has also been a comparison between the economic happenings of the last year and the 2008 economic woes that saw the global downward spiral of several big economies.

Like in other American states, the crunch was felt in Memphis. However, certain metrics showed that the 2020 economic spiral was different from the 2008 counterpart. There is a beacon of hope and it has presented itself via the way of the Memphis Area Association of Realtors’ (MAAR) report. The roundup showed that the economic crunch is fundamentally different from the 2008 meltdown. Not only were more houses sold, but they were also sold at more expensive prices. The sheer fact that this can be done in the middle of a pandemic is simply phenomenal.  

The numbers are absolutely astonishing and this is proof that the present economic crunch is totally different. The median sales price for houses in the city also jumped about 14% higher than the previous year, accounting for a jump worth around $177,000.

The difference in the number of Memphis homes sold in 2020 and 2019 was well close to 70. Well, the strong end to the year did not come as so much of a surprise, taking into consideration the daring growth that has taken shape right from April, May, and June. The only surprising element is that this growth did not happen in any other year but in 2020- a year in which everything seemed to have gone the opposite way.

Going by the words of the 2021 president of MAAR, it is “remarkable” to have experienced such an increase in total sales compared to the previous year, at a time when the world was in a fight to live. The brokers and sellers have more than enough to chew after the year 2020 recorded a massive 35% uplift to inventory that has always been labeled as ‘tight’. Take note that the number recorded accounts for homes sold in Shelby, Fayette, and Tipton Countries.

When the market is viewed critically, a pattern begins to form. When you see this pattern, you will realize that the growth has been very strategic and that it has been building up for quite a while now. Take for example the trends released that mapped the overall behavior of the national market. The comparison of both market trends shows a lot of similarities.

According to the figures released by Realtor.com, they made the observation that the national register of homes put up for sales hit the lowest level in December 2020. In the build-up to that, Realtor.com also pointed out that the prices of those houses have been on an early surge since June 2020. That resonates well with the pattern put on display by the Memphis Area Association of Realtors.

Taking a more divergent approach to the analysis into each locality, it has become evident that the areas that recorded the most elevation in house prices are Frayser, South Memphis, Lakeland, and East Memphis. The increase experienced in these areas are 24%, 22%, 20%, 20%, and 19% respectively. Likewise, in Collierville, the report made by the Memphis Area Association of Realtors noted that the median home price grew, and surpassed the $400,000 landmark.

There is so much that is left to be seen as to how the prices and availability of houses would fare in 2021. But taking a cue from the experience of the previous year, it is definite that an upsurge cannot be ruled out. So, although the direction is not definite, it is sure that the industry has a whole lot to look forward to this year 2021.

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New Industrialization Campaign of Memphis Mega Site to Generate Thousands of Jobs

New Industrialization Campaign of Memphis Mega Site to Generate Thousands of Jobs rfinley@seodig… Wed, 02/03/2021 - 15:27

West Memphis has made the announcement of a marketing campaign aimed at generating the development of a 1,800-acre industrial site located on Interstate 40. The land is one the largest single tracts in metropolitan Memphis that is yet to be industrialized. 

As revealed, the marketing strategy is to find a single user, such as an auto assembly plant, or users for the property, which is distinguishably positioned at the Arkansas 147 intersection- just west of the West Memphis campus of Arkansas State University. The property is the one piece of land of such size that is still available for development in all of Memphis and Shelby Counties.

Based on the original plan outline, the campaign would get into full operation in November 2020, starting with an official announcement sent out to notable industrial site selectors and corporate executives across the country. The land is served by water, rail, and sewer, and that guarantees that it is not deficient in attention. According to the words of Nick Coulter, the director of communications for the city of West Memphis, there is a possibility of the property being divided into little pieces to accommodate multiple occupants. 

The primary purpose of the campaign is to relieve the continuous increase in the rate of unemployment across metropolitan Memphis. In August 2020, the unemployment rate in West Memphis measured up to 10.9%, compared to the 11.9% measured across the nine-county metro area. A large part of that increase is credited to the Coronavirus Pandemic. The pandemic has significantly slowed down the rate of business investment, but Coulter still believes that a lot of companies that had plans for an expansion would remain committed to that vision, with the hope that the vaccine would soon be available globally. 

Alongside the West Memphis property, there is also a 4,100-acre Memphis Regional Mega site that requires more advanced infrastructural work. The regional mega-site is located on I-40, around 30 miles northeast of Memphis, and it has been in the custody of the state of Tennessee since 2009. 

In Memphis/Mississippi suburbs, the BNSF Railway has already licensed the project of a 1,220-acre Springs Industrial Park at Holly Springs. The whole expense of the land is close to the 1,800 acres superintendent by the Marshall County Industrial Development Authority. That is the same board that is in charge of the 3,200-acre Chickasaw Trail Industrial Park. Also, not too far, the private Gateway Global Logistics Center owns 2,000 acres of land that is available for development, northwest of Holly Springs.

The West Memphis officials plan to deploy the 1-40 intersection that the Mega site has with Interstate 55 as one of the best-selling points. Not just that, they will utilize the facts that the property is just a 10-minutes’ drive from Downtown Memphis and in the neighboring vicinity of the Memphis International Airport. Even more, the location is accessible from the Union Pacific rail service. 

To divulge further strategic details of the campaign, Coulter revealed that the campaign would creatively implement digital approaches such as search engine optimization (SEO), Facebook advertising, and much more digital procedures. 

The aim of the marketing campaign is very definite and without doubt, the plan is a good one. However, whether or not the growth will go according to plan, only time will tell.

Looking to invest in the Memphis area? Contact Reedy & Company today!

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2021 Real Estate Predictions

2021 Real Estate Predictions rfinley@seodig… Tue, 01/12/2021 - 19:58

From a broad perspective, the coronavirus pandemic has had an unequivocally negative impact on the nation’s economy. Yet, the real estate market remains one of the few exceptions to this trend.

Despite such vast turmoil, the 2020 housing market remained a strong seller's market. While the 2021 real estate market may not show the same impressive growth compared to this past year, projections generally remain positive.

How the Pandemic Has Impacted Demand

It is no surprise that the pandemic is a leading influence over the state of the housing market. The most prominent factor in this regard is the fact that older homeowners have been reluctant to put their houses on the market. The widespread instability of the world has motivated them to forgo putting their homes up for sale.

This reduction in homes on the market has had a significant impact on demand. With fewer homes on the market to meet the demand of new home buyers, prices have soared. In fact, 2020 showed a record high of $320,000 as the median home price. Fewer homes on the market have also led to greater competition between potential buyers.

While this increase may not be ideal for buyers, the impact has been positive for sellers looking to make a decent profit.

General Trends in the Housing Market

In general, experts expect the 2021 real estate trends to be a milder version of those we experienced in 2020, which means you can expect the same positive trends to continue but to a lesser degree.

While this is good news for those considering listing their houses on the market, it does not tell the full story of what you can expect in 2021. Let’s look more closely at some of the most critical aspects of the 2021 real estate market.

Mortgage Rates

Right now, mortgage rates are exceptionally low. Much of this has to do with fluctuations in the unemployment rate and general economic uncertainty related to the pandemic. It is hard to predict how long these rates will remain low, but as of now, this is a great time for refinancing.

Odds are, the mortgage rates will remain low for most of 2021. There are no current plans for an increase. And if one comes, it will not likely be significant at least until the second half of 2021 or the start of 2022. Even with a rise, mortgage rates will remain low relative to historical standards.

Housing Prices

Housing prices in 2021 will change mainly based on location. On the one hand, existing homes in areas of lower population densities are increasing. Conversely, housing prices in many urban areas continue to show either no change or a decline.

Much of the increase in housing prices relates to low inventory. But there are other factors to consider here too. For one, many people are reluctant to live in areas of high population density. This reluctance arises from a fear of infection. Additionally, more people are working remotely than ever before, meaning there is far less demand for homes that offer a short commute to a downtown office.

Suburban Demand

As alluded to in the last section, the major trend for new home buyers is to move away from highly-populated areas. Migration towards the suburbs is a decades-long trend. In the past year, that pattern has only intensified.

There are a few reasons for this trend, one of which is the fact that suburban and rural land is typically cheaper than that which is located in a populous urban center. Spaciousness and relief from busy city life are also motivating factors for people of all ages to seek homes in the suburbs.

New Construction

The 2021 real estate market will also feature an increase in new home construction. In keeping with the major trends, much of this new construction will take place in suburban areas. The reason for so much new construction is two-fold.

First, the lack of housing inventory has increased competition for purchasing existing homes. This has forced many to consider new construction as their only viable option.

Second, more people are spending more time at home as a safety precaution related to the pandemic. As a result, many are interested in larger homes than those available on the market. With more new homes built in the coming year, you can expect average square footage to increase as well.

Potential Political Factors

As always, political policies have the potential to alter the current trends of the 2021 real estate market. With the transition to a new presidency, such dramatic policy changes are even more likely. While there are no guarantees in the political realm, there are a few factors to keep in mind as we transition to the new year.

Foreclosures

In response to the coronavirus pandemic, the Federal Housing Finance Agency (FHFA) has issued a moratorium on both foreclosures and evictions. There is no telling how long this moratorium will last. But at the very least, we know it will continue through the first month of the year.

It is possible that the FHFA could extend this moratorium, but there is no way of knowing for sure. If and when the moratorium ends this year, we can expect to see a rise in foreclosures. Meeting rent and mortgage payments has been challenging for many this year. Considering that fact, once the moratorium ends, there will be far more homes available on the market.

First Down Payment Tax Credit

As a part of his presidential campaign, President-Elect Joe Biden has proposed a tax credit for first home buyers. This credit is intended to aid new homeowners in saving for a down payment.

Among other measures, Biden has proposed a $15,000 credit to help lower-income individuals buy homes. Again, there is no telling if this proposal will pass in congress. But if it does, you can expect to see more potential buyers in the 2021 real estate market. This will effectively drive down demand and housing prices.

Final Thoughts

2020 was an unpredictable year in many ways. The activity of the housing market is no exception. Looking ahead, it’s likely that the 2021 real estate environment will remain friendly to sellers. While it is nearly impossible to make a perfect prediction, in all likelihood, the 2021 housing market will continue the positive growth from last year.

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6 Tax Write Offs for Landlords

6 Tax Write Offs for Landlords rfinley@seodig… Mon, 11/23/2020 - 16:37

If you decide to become a landlord, you need to treat it like a business. You are going to need to keep up with your paperwork and start to prepare for tax season. To do so, you need to know what you can and can't write off with your new business. Some are cut and dry, while others are a little more complicated. For this reason, you should consult a tax professional as soon as (or before) you start your new adventure.

Tax Deductions For Landlords

Here are some common tax write-offs that you won't want to miss.

Interest

You can write off your mortgage interest on your property. However, you can also write off interest on other loans and credit cards that you use to buy and improve your properties. You may use your credit cards to help you track the improvements that you make in your property, such as fixing leaking faucets and other maintenance.

You can also write off interest when you use your loans and cards for activities that you have related to your business. This includes any parties and get together that you have to get new tenants or even as a way to thank your current ones.

Depreciation

Depreciation can be hard to understand. The truth is that your rental property is going to decrease in value so you can write that amount off on a yearly basis. However, how much you can write off may be hard to figure out so it is important to talk to a professional to make sure that you handle it properly.

Employees and Independent Contractors

If you hire employees to help you run your business, you can write off their expenses. If you hire independent contractors to mow, clean up snow, and do maintenance around the property, that counts too!

Professionals You Turn To

As a landlord, you are going to work with a lot of other professionals and you can write off these expenses too. This includes your lawyer's fees, accountant, tax professional, and even those who guide you through the real estate process. If you use a management company to run your business, that is also an expense that you can write off. Investment advisors also count.

Travel

Though most landlords don't really think that they travel a lot, the truth is that they may be traveling around town looking at properties. They may also travel out of town to look at additional properties. Landlords can even deduct costs for traveling to home improvement stores and other places that they need to go that are related to their rental business.

Marketing expenses

Though you may consider marketing just part of running a business, the truth is that you can write these costs off. This includes any ads that you may place in newspapers and any postage that occurs when you mail things out. If you decide to build a website and maintain it, these costs should be deducted. If you hire someone to do this for you, that is an expense that can be written off.

The best way to make sure that you are prepared for tax season as a landlord is to hire an experienced tax professional. He or she will make sure that you don't miss any tax write-offs and you can keep as much as your hard-earned money as possible!

Your tax professional will be able to make sure that you don't forget any interest that occurs, your depreciation, and any marketing expenses. He or she will make sure that you deduct any employees, contractors, and even professionals, including their services)!

If you are thinking about becoming a landlord (or you would like to get some more properties), don't hesitate to contact us today. We have multiple properties for sale to help you get started.

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Uptick in Mortgage Applications in Early October

Uptick in Mortgage Applications in Early October rfinley@seodig… Thu, 11/05/2020 - 19:50

Despite the global pandemic and the hit that the economy has taken over the last few months, mortgage applications in early October took an unexpected rise according to the Market Composite Index following the first week in October. After months of a declining market, a small spike in these applications drew attention to what exactly was on the rise. The changes for this spike in mortgage loans may even be related to the COVID-19 pandemic and the effect it is having on citizens everywhere.

Refinancing Mortgage Loans

Of these increased mortgage applications, many of them were refinancing applications and current mortgage lenders attempting to take advantage of lowering their home payments as a way to maintain their finances in the months ahead. With a reduced income and the potential for a reduced income in the foreseeable future, these homeowners decided to take advantage of an opportunity provided to them by their lenders.

This is also relative to homeowners who have steady jobs that survived the pandemic and are able to maintain some form of financial stability among the economic unrest happening across the country.

Lower Interest Rates

Many lenders in states across the country offered a refinancing option for current mortgages as a way to keep their accounts current and assist them with the economy.  Lower interest rates in the housing industry through the summer appeared to have captured the interest of current homeowners and those in the market. This indicates that homeowners were looking to take advantage of these lower rates before they started to rise again. These interest rates have been some of the best that the housing industry has seen over the last decade.

VA Loan Applications

Part of the uptick in mortgage loans during early October is in part to VA loan applications. Because of the generous interest rate provided to members of the military, these VA loans offer a better option for first-time homebuyers or homebuyers in general who are looking to make a change. With these rates as some of the best in the industry right now, many of those who qualify for VA loans decided to take advantage of this offer just as those who took on refinancing their current mortgage.

Who Is Buying

Because the uptick happened in the VA loans and refinance applications, it seems as though these buyers are current or former home buyers looking to make moves in the housing market. There was a decrease in Early October for FHA loans, indicating that first-time homebuyers were stepping back due to the unpredictability of the economy.

The Shift in Loan Size

Because of the pandemic, the housing market has taken a shift in loan size across the market, with smaller loans being up more than larger homes and mortgage amounts financed. A lot of this has to do with families looking to downsize to more affordable homes and monthly expenses that parallel well with their current financial situation due to the pandemic. This means that larger homes are being listed, but smaller homes are selling quicker with more applications put in early on in October.

What Does This Mean For the Future?

These rising applications in the housing market indicate that there is still some interest left for citizens who want to make a move and want to take advantage of the right opportunity. While the uptick is rising, it represents the fact that the housing industry is still holding on and continuing to be successful despite the impact it suffered early on in the pandemic.

 

If you are in the market for a new property in Memphis or would like to speak to a real estate expert, give our team at Reedy and Company a call today. We look forward to assisting you with all of your real estate needs.

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