More Memphis stats from Jan 2016

[Douglas Skipworth]

Here's another article about the January 2016 sales in Memphis.

For what it's worth, I just spent the day (Wed 2/10/16) driving around town looking at Class A and B properties with a CA hedge fund and was shocked by the lack of available inventory for sale.

[Jay Hinrichs]

@Alex Craig @Douglas Skipworth  Gentlemen my take away from what your saying is that the rentals are working the new crop of buyers are much stronger.. since 50% or better of your inventory comes from failed landlords.. this part of the equation is firming up.. and most failed landlords were undercapitalized and did not really know what they were doing IE bought their first property with no clue.

Welcome to a West coast model.. NO house here sells for under 100% of value unless its a hoarder house or basically destroyed... what I find in your market is apprasials are pretty much meaningless.. the homes in the rentals areas are sold on GRM or acceptable cap rate or 1% rule pricing... not retail pricing were the ARV's come from.

I have owned a few of these homes over 300 of them and NEVER once sold one for "appraised value always less" so the instant equity theory in my mind is just a feel good its not reality because you will never sell it for that.. it all boils down to rental returns.. and

from what your saying the market appears to have cleaned out the bad landlords the uneducated and undercapitalized landlords and you have some stability.. it had to happen sometime.