November Home Sales Drop in Memphis; Year-To-Date Tennessee Mortgage Demand Still Strong

While certain parts of the state have seen a boost in Tennessee mortgage demand recently, the Memphis Area Association of Realtors said Friday that 1,369 homes were sold during November, down from 1,427 in November 2005.

However: Despite the sales decrease last month, year-to-date home sales of 18,343 and sales volume of $3.17 billion keep 2006 on track to exceed 2005’s record-breaking totals, MAAR said in a statement.

The average house price was $170,000 in November, a decline of 2 percent from November 2005. This would explain explain home loans shot up this year; lower prices open up the market to more borrowers.

“For those who might be unsure of current economic conditions, there couldn’t be a better time than now to buy a home in the Memphis area,” said MAAR President William Mitchell in a statement.

“With our market’s long track record of steady and measured increases in property values, the historically low mortgage rates, and the good supply of homes available, buyers have a unique opportunity now invest in their future.”