Archive for the ‘current events’ Category
Hot on the heels of a report that revealed the dire state of many rental properties in the area, there has been a wave of inspectors fanning throughout the local neighborhoods entering rental properties and inspecting for health code violations, among other problems. Random inspections are not going to be announced but will be during the normal operation hours of the city of Memphis. Code enforcement is something that has fallen lax in recent times as there haven’t been many complaints from tenants, who likely direct any complaints they do have to their landlords. However, in a recent report, Memphis ranked at the rock bottom of a study by the National Center for Healthy Housing, placing dead last among the 45 included metro areas.
Moving to a rental property in Memphis certainly has some cautionary tales, such as mice, mold, water leakage, roof issues, and other health and safety hazards that can deem a home as unlivable. Communities, local housing authorities, property managers and individuals need to be aware of these housing issues. They end up costing us in the form of an array of health problems, including asthma, lead poisoning and cancer. These environmental-related diseases are estimated to cost the U.S. $70 billion a year. The good news is that relatively simple repairs can correct many problems. The inspections will be a beneficial process that will help enhance the quality of living for renters throughout Memphis and beyond.
The real estate market in Memphis is certainly a mixed bag, and while residential sales are up for the year, one area where the real estate has given way is in permits for new construction. Builders filed just under 200 permits in the third quarter within Shelby County, which is a decrease from the 229 of the same time in 2012. That results in a fourteen percent decrease from 2012 to 2013, and that isn’t the only way they decreased—the size of the homes that were being proposed is 1.5 percent smaller than the homes applying for permits in 2012.
The Germantown local movers have found that there is a variety of reasons why prospective builders are deciding to build slightly smaller and in fewer amounts. For one, many of the lots that are sitting undeveloped are scarce, and those who have some of the available land are not necessarily in a huge hurry to build something just for the sake of building. Additionally, continued worries about the economy, the government shutdown, budget battles and the Affordable Care Act have encouraged builders and developers to temporarily pause and see what effect it has on the economy, both locally and nationally.
Year to date, home builders have pulled 681 permits, down 2.6 percent from the 699 permits pulled in the first nine months of 2012, according to Chandler Reports. Builders have sold 604 homes thus far in the year, up 5 percent from the 574 sold in 2012.
The housing market in Tennessee’s Shelby County is growing significantly as the months go by, with the latest proof in the third quarter findings which show there are double-digit increases in many key real estate areas compared to the same time in 2012. The Collierville movers have found that the local market is definitely strengthening, and the data backs that belief. Almost 4,700 homes sold in the third quarter, which is a 12 percent increase from 4,176. Total sales volume was also up 12 percent from last year with $682.8 million in sales. And sales price? That rose 11 percent to an average of $131,615.
So far this year, Shelby County has reported almost 13,000 homes for sale—which is a 10 percent gain over the same length of time in 2012. Total sales went up to $1.68 billion, which is a 22 percent gain. As we close out 2013, inventory is undeniably tight for new prospective buyers, and interest rates remain at consistently low levels. If you are debating a home purchase in Memphis, we highly recommend that you go ahead and go for it! Collierville is leading within the county with the highest amount of sales, as well as the highest revenue.
The number of existing home sales increased 13 percent, to 4,475 in the third quarter from 3,961 in 2012. The average sales price for an existing home in the third quarter was $139,943, up 12 percent from $125,011 last year. New home sales totaled 211 in the third quarter, down 2 percent from 215 over the same period last year. The average sales price for a new home was $267,836, up 6 percent from $253,272 last year.
Following the real estate market crash, it was a common sight to see homes foreclosed, sitting abandoned, stripped of appliances, and with boarded up windows. In some areas, investors have come in and rehabbed these houses to bring new life back into these neighborhoods that have fallen into blight. In Memphis, however, there are still many properties that are in need of help. The Memphis movers have found that neighborhoods can have entire rows of houses with boarded up windows, a problem that contributes to increases in squatters, drug use, violence, and also brings down the value of surrounding homes and neighborhoods.
Since 2006, Memphis police have boarded up over 250 homes throughout the metro area following undercover investigations and other efforts focused on reducing crime in the city, but that’s a miniscule amount compared to the 80,000 abandoned homes throughout Memphis. Empty buildings, boarded up homes, and overgrown lots are all eyesores that keep growing in the area.
Cleaning up some of these lots is an essential step in trying to sell them, or to having the community revamp them as public spaces such as community gardens. Currently, there is a $7 million budget for blight mitigation, an issue that Mayor Wharton finds crucial to the growth and strengthening of the community.
The University of Memphis has increased enrollment for the pending school year, and in conjunction with a larger student population comes the need for more student housing options. Currently, there are several projects underway to offer additional new housing for students moving to the area. One complex is the $9.35 million four-story development just across from campus, and another complex that will be officially part of the University of Memphis which will cost $43.5 million.
The abandoned Highland Row area might undergo revitalization as well as the need for quality apartments continues to grow. The Memphis student movers have learned that last month, the state proposed a complex that would encompass several blocks, including Highland Row, for residential and retail tenants.
The commercial real estate market in Memphis isn’t that easy to read, according to the market data gathered that shows a mixed picture in our metro. For example, office space has a dramatic and significant negative absorption of 173,425 square feet (thanks in part to the moving of Pinnacle Airlines out of their downtown office), but on the flip side, retail real estate showed a growing positive absorption. In fact, the current retail vacancy rate for the area is the lowest level it has been since the fourth quarter of 2009.
The Memphis commercial movers have examined a little further to check into the industrial market. With Technicolor moving out, there was a loss in absorption to the tune of 580,131 from that company alone. However, there are bulk distribution users who are soliciting proposals throughout the market, leading industry professionals to believe that 2013 will end on a strong note.
On a whole, the Memphis metro is seeing activity comparable to the sales and rental rates of 2007. The mid-South is predicted to get stronger in terms of real estate prices and development, and the strengthening of Memphis commercial real estate would be undeniably beneficial for the city.
Real estate investments are a substantial part of any healthy real estate market. Recently, the Wall Street Journal recognized Memphis as the number one city in the United States for investing in single family residential properties. Number one! The rankings were based on the cap rate, which in Memphis is 10.38%, followed by the number 2 city of Saginaw, Michigan, with a cap rate of 10.32%.
The Germantown local movers have found that the cap rate is correlated to the net profit compared to the current value of the asset. Memphis is an ideal location for investment property purchases thanks to the profit that can be made by interested real estate investors in the area. Keep in mind- a real estate investor does not need a huge portfolio–you can buy one house at a time and flip it to make a profit before purchasing further properties.
Foreclosures are dropping in the area, and institutional investors are moving into the area more frequently. As the inventory of available homes in the area decreases, the market will only get tighter and increase the eventual worth of properties for investors to resell or rent out to local tenants.
Interested in buying an investment property in the Memphis area? Don’t hesitate! Take advantage of these prices and get your personal finances poised to grow with a real estate investment.
Main Street is getting some new dining options in the near future, according to a report by the local Business Journal. A new burger is proposed to open in the space currently occupied by Dream Berry Frozen Yogurts & Treats. The restaurant does not have a name as of yet, and it will join the owner of two local Gastropubs as a third dining option in Memphis. The local Memphis movers have found that the location will seat 60-70 patrons.
It will focus on burgers and hot dogs with fresh ingredients and in house sausage. The current building will be renovated to appeal to a Texas Hill Country theme. Fresh ingredients will also be used for the cocktails. The proposed opening date will be next year, which will give the development company time to figure out the name, design, and exact menu.
Shelby County has experienced a rebound in local housing, according to a report complied by Chandler Reports, which shared that total home sales in the area were up 11 percent for the second quarter of 2013. The number of total homes sold throughout the county came to 4,226 homes, with total sales volume rising 21 percent. The Memphis local movers have found that the average sales price in Shelby County was 9 percent higher than the price in the second quarter of 2012.
For the entire 38017 zip code, the highest number of sales where in Collierville. The rebound is expected to continue in the area, something that is positive reinforcement for local professionals like contractors, realtors, and us, your friendly local movers.
The Memphis industrial real estate market is posting positive numbers, according to a recent report by the Memphis Daily News. The industrial market in the area has recorded net absorption of 951,683 square feet during the first three months of 2013, making it the 4th consecutive quarter or positive absorption for the metro area. The report pulled data from the CBRE which charts the industrial market statistics.
The Memphis industrial movers have found that the vacancy rate for industrial space in the area is dwindling, and the industrial vacancy rate has actually dipped below 11.5 percent early this year. The demand for industrial space is strong, but the debate now is whether there needs to be added supply or if it is best to wait.