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.
