Prices of Houses Like Government Foreclosures for Sale Fell in TN

by Simon Lindsay on Foreclosure Crisis

The prices of bank and government foreclosures for sale and non-foreclosed residences declined in several areas of Tennessee in November 2010. One of these areas was Memphis, with the metro city falling lower in the nationwide rankings of best performing housing markets for November.

It is not only in Memphis that prices dropped. Lack of buyers of bank foreclosures in Chattanooga and other residential properties in various areas of the state resulted in further price depressions in major state housing markets. Memphis, one of the key metro housing regions of Tennessee, dropped to 15th among the best performing major home markets in the country.

The huge supplies of Tennessee foreclosures for sale are taking their toll on the metro areas of the state, including Memphis. Last August, the city was ranked third among high performing markets, then dropped to 15th in September and climbed back up to 12th in October. The rankings were based on repeat sales, types of multiple sales and price of properties per square feet. Sales data were derived from real estate assessors and government agencies.

The latest three-month period that included November saw prices of non-foreclosed houses and bank and government foreclosures for sale in Memphis declining by 7.8%. The city's year-to-date prices, on the other hand, declined by 5.4% compared with the same 2009 period. Aside from Memphis, another Tennessee metro area that recorded a decline was Nashville, with year-to-date prices down by 6% in the city. Nashville is also one of the 13 housing markets recording the lowest level of residential property prices since the real estate industry crisis started.

Those who knew how to find bank homes that are offered at heavily discounted prices will likely go to cities with the highest foreclosure rates. According to analysts, foreclosure numbers remain the most significant factor in terms of deciding the level of residential property prices. For the latest quarter, 34% of Memphis home sales were accounted for by foreclosed houses.

The latest actual price data available for Memphis showed that the average year-to-date selling price up until October for non-foreclosures, bank foreclosed and government foreclosures for sale was at $141,000 this year. The figure represents a 2.1% gain when compared with the same 2009 period when average selling price was at $142,000.

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