Lower-priced condo foreclosures have been rejuvenating the condo market in Memphis.
In April, 67 condo units were sold in Shelby County, where Memphis is situated, a sharp jump of 24 percent from the 54 units sold in March and up by 5 percent from the 64 units sold in April last year.
Sales of condo units downtown also increased, with 15 downtown units sold, up by 114 percent from the seven units sold in April last year.
The market has also started to absorb condo foreclosures. Seventeen of the 21 foreclosed Goodwyn units which were acquired by Hobson Company last year have been sold. Local real estate analysts said that the rising number of people planning to buy home foreclosures and looking at foreclosed condos is one sign that the Memphis housing market is starting to recover from condo overbuilding.
Downtown condo projects like Horizon and One Beale and condo developments in the South Main Historic Arts District faltered because of oversupply, slow sales and lack of additional financing.
In April, foreclosed homes for sale in Memphis, TN surged in number both from the previous month and from one year earlier. A total of 1,759 Memphis homes were hit with filings in April, up by more than 12 percent from April last year and up by 18.5 percent from the previous month.
In contrast, the number of Tennessee foreclosed homes dropped in April to 2,279 units, down by 8.6 percent from 2,492 units in March. Total foreclosure filings also fell, but only by one unit, from 4,790 units in March to 4,789 in April.
Despite the year-over-year rise in condo prices in April, buyers still considered them low compared to housing boom prices. The average sales price for condos sold in Shelby County was $104,911, down by 31 percent from the March average price of $152,915.
With the year-over-year increase in condominium sales in April to a total volume of $7 million, local realtors hope that lower-priced condo foreclosures will continue to push up condo sales.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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