Did you know that the average price of a home for sale has increased by 32.6%? In some areas, it has increased by 43%!
What about the Memphis housing market? You might wonder how it’ll look for 2022, whether it’ll be a buyer’s or seller’s market.
If you’re looking for the answer to this question, then you’ve come to the right place! Read this guide on the top trends and real estate facts to expect for 2022.
If you’re thinking of selling your home fast, then click for more information. You can find out how fast you can really get it sold in no time!
As you’re looking into Tennessee real estate trends, it’s important to note that Shelby County (where Memphis is) is the most populated county in the state. The great part about the area is if you’re thinking of scoring rental income, millennials love renting in the area. Memphis is also a diverse city making up a large percentage of White Americans, African Americans, Asians, and Hispanics.
Real Estate Trends 2022
Did you know that Memphis is one of the top 5 fastest-selling real estate markets in the United States for 2021? In Memphis, properties sold 16 days quicker than in 2020.
Due to this, the houses that are available are in a limited supply. Fewer new homes are being built in the area as well.
This had led to a problem with supply and demand in the area for homes. With homes being in short supply, the prediction is that the demand and home prices will continue to be high.
An Increase in Rates
Experts are predicting that 2022 will see an increase in home prices. Home sales will continue to see an increase in prices as well. Even with mortgage rates increasing, home prices will still increase as well.
It’s predicted that the Memphis area will see sales well above the national average across the country. Home prices could increase fast and double the rate across the United States.
While other areas in the Tennessee housing market could see an increase in prices, Memphis is the only major city where sales are forecast to be well above the national average.
Due to the low population density and affordability of the area, that’s also driving up costs. Many home buyers want to be able to have space to spread out and not be on top of neighbors.
Low Rental Vacancies
For those looking to rent a home or apartment, they’re in short supply as well. Rent prices are expected to increase over the next year even though they’ve already gone up. Due to home prices increasing, this could put pressure on renters to buy their own homes.
Is There an Opportunity for Flipping Properties?
Right now, it’s not the right time for an investment in flipping homes in Memphis. It could be a better opportunity to check out other areas in the United States.
If you’re new to investing, it’s a good idea to read up on real estate investment strategies. However, low-interest rates might be a reason to consider this area.
Long Neglected Areas Get a Revamp
As the area is filling up, investors are starting to look into neglected areas for growth opportunities. Some parts of Memphis have homes that are neglected, abandoned, or boarded up. Today, many flippers are looking at these homes as an opportunity.
Long-term homeowners in the area worry about what the future will hold. They want to be part of the process if investors decide to revamp older areas.
Many homes that were boarded up are now being bought and flipped. Investors are on track to keep this momentum going for extra cash.
Some areas are trying to offer long-term homeowners tax-incentive programs in order to have a say in future development. One area stopped the sale of county-owned properties in South Memphis.
These homes were owned by the county due to the owners not paying their taxes. The hope is that this tax incentive keeps the owners of these homes local. If not, they’re worried that they’ll only be after money and not care about the future of the area.
Homes Being Bought up by Outsiders
As the trend continues, outsiders are buying homes in the area. These developers from other areas might not care about the betterment of the area. As they continue to build and buy, this is also driving up the costs and pushing others out.
Some areas have laws against this, which Memphis hopes to have. In Detroit, they have what’s called speculation. This is where someone buys a property that they don’t fix up and sells it for a higher price when the value goes up.
Due to the prices of homes increasing, now is a great time to buy a rental property in the area. You could see nice returns in the long-term and rates that continue to increase over the years. There are plenty of fully rehabbed properties with cash flow opportunities.
Understanding the Memphis Housing Market
After exploring this guide, you should have a better idea of the Memphis housing market. Take your time deciding if buying, selling, or renting is the right option for you.
Would you like to read more informative and helpful content with real estate in mind? Be sure to check out our other articles today. From fact-filled articles with plenty of content to do-it-yourself projects, we’ve got you covered on our site.