Residential real estate has taken a swift turn back into the land of the living, thanks to a building boom of new construction. Suburbs are growing on the outskirts of Memphis and particularly growing in the Arlington area. Kensington, a suburb inside of Arlington, is an example of the booming construction rebirth. Despite laying dormant for years, the development is finally putting up homes and building new properties. The Arlington local movers have also found that our area has been named as one of the fastest growing communities in Tennessee.
Before the homes were beginning in the area, the development was mostly cleared land ready for construction and roads paved that led to nowhere in particular. Property values across Shelby County are rising and that trend has led to more home sales, more development, and more home building.
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.
Well known BBQ giant Tops Bar-B-Q Inc is setting up a new location in East Memphis, marking the 15th retail store for the brand. The new store will be located at 5144 Poplar Avenue, and the space has signed a 20 year lease on a yet-to-be-built 2,772 square foot restaurant space. The general manager for the company says he feels the new location will be the brand’s strongest, and current traffic has an estimated 33,000 automobiles passing by the pending location daily. Strong traffic patterns can certainly have a strong role in making the east Memphis location strong.
The Cordova local movers have learned that the company was attracted to the area because of the large population of nearby offices, residential properties, and other big bin retailers like Home Depot and Kroger.
The actual site was a struggle to plan with, but the final blueprints for the store show that there will be room for a drive thru and a parking lot with 16 spaces. The contractor who built the last three Tops locations will be in charge of this project’s construction as well.
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.
Home sales in Tennessee’s Shelby County jumped 15 percent from May 2012 to May 2013, according to reports from a real estate reporting and information company, Chandler Reports. The Memphis housing market has become a pretty good and stable place, with total sales volume up to $197 million in May 2013, up from $171 milli0n in May 2012.
The Memphis local movers have found that the average sales price was up 9 percent from May 2012 prices, and the highest sales for the area were in the Cordova North area of the county, followed by Cordova South and then Collierville. Collierville, however, ranked as the top area for total sales. Existing home sales increased five percent, while the overall trend shows that prices are rising consistently in month over month comparison.
The mortgage lending rate in Shelby County is rising, according to reports by the National Association of Realtors. At April’s Memphis Area Association of Realtors 2013 Residential Real Estate Summit, it was announced that the local real estate economy is picking up and that better days are ahead for the industry. Banks and other lenders made a 2 percent rise in loans from the first quarter of 2012 in terms of new mortgages alone, not factoring in refinances.
The Memphis area movers have found some additional data that shows the strengthening status of the region’s real estate. The monetary amount of mortgages lent are on average 10.9 percent higher than the same time in 2012 and a 13 percent higher in volume. Thus far, total sales are up 7.1 percent over 2012 and the positive data is predicted to continue throughout the duration of the year.
A recent report by RealtyTrac, Inc. has shared that the Memphis area is one of the best regions for investors looking to purchase homes as rental investment properties. The Top 20 list features Memphis, seven Florida cities, and 12 other metros nationwide. The Memphis movers have found specific data pertaining to our metro as we have the top position on the list, with median prices at $72,605 for a three bedroom home and an average rental rate of $1,047 for a home of the same specs.
The data was compiled by examining predicted cash flow thanks to capitalization rates, rental rates and home prices. Occupancy rates for the included regions were not a factor used to determine a market’s overall ranking.
The report also shares that rental investments were a popular aspect of the 2012 real estate market, but there are still plenty of properties to be snatched up by interested investors at quite reasonable prices.
A new dining option will be coming to the popular downtown Memphis area, according to reports by BizJournals. A famed dining place from nearby New Orleans called DeJaVu will be opening a location in downtown Memphis next month. An existing location is already here in Memphis, located at 936 Florida Street, and the soul food/vegetarian restaurant will open the second location at 51 S. Main Street.
The Germantown movers have found that the new location will encompass 4,000 square feet–a huge jump from the existing Memphis location that contains about 1,200 square feet. It is planned to seat 85 guests indoors and have an additional 20 seats on the patio. Employment opportunities will be open for about 20-25 new employees. The other Memphis location employs about 10 people. Additional proposed plans have discussed adding an area for the brand’s growing catering business.
The hopes are high for the Memphis area community banks who have placed a lot of faith in the real estate market and the mortgage arena. Community banks in the Memphis metro area have taken the recent real estate trends as an upturn for the local real estate industry. Low interest rates, residential gains, and lower lending competitors have created an ideal platform for smaller, independently owned community banks to offer desirable mortgage rates for local residents wishing to buy in Memphis.
The Germantown movers have found that banks who were once predominantly signing auto loans are now reaching into the mortgage arena, such as Independent Bank of Memphis, who aims to become one of the top 10 mortgage originators in the area. As long as the consumer confidence remains high, it should be a positive year for the Memphis area real estate market.
January was a fruitful month for residential realtors in the area, according to a report produced by the Memphis Area Association of Realtors. Final numbers showed an increase over January 2012 homes in January 2013 by about 46 percent. A total volume of 1,259 homes were sold in January at a median price of $88,000, which marks a rise in median pricing by 17 percent from 2012.
The average sales price also grew in the region, with monthly sales volume rising significantly–57 percent over last year! Even as recently as December 2012 there has been growth, with figures rising 9 percent over the 1 month period. The Germantown movers have found that existing sales specifically felt quite a significant surge of growth on their own, with existing sales showing 50 percent growth in sales volume compared to January 2012–impressive! Neighborhoods seeing the benefit and boost in sales have been targeted as: East Memphis, Downtown, Frayser, Cordova, Germantown, Arlington, Millingon, and Parkway Village/Oakhaven.