Another year is in the books for the Memphis Area Association of Realtors and with that comes the final market report for the prior year, complete with end-of-year data for 2021.
For those interested in the ongoing state of Memphis' real estate market, the report — released Jan. 10 — provides a snapshot of where things stand at the end of 2021. The data also gives initial signs of what to expect in 2022.
Here are three things to know about the Memphis housing market as the new year begins.
Housing market in Memphis: Here are the neighborhoods with largest home price increases in 2021
Memphis real estate: Memphis real estate: Home sales and prices were up in 2021. What's coming in 2022?
How many homes were sold in Memphis in 2021?
There were 22,263 total home sales in the Memphis area in 2021. That's about a 13% increase from the 19,698 homes sold in 2020, according to MAAR data.
The increase comes even as home sales in December declined slightly from 2020 (1,813) to 2021 (1,809).
What was the median home sales price in 2021?
The median sales price of a Memphis-area home rose about 16% from 2020 to 2021 ($177,000 to $205,000).
This resulted in many Memphis neighborhoods and Shelby County suburbs seeing significant increases in home sale values over the past year.
How many active listings are in the Memphis area?
The increase in home sales prices can be connected to another trend in the Memphis-area housing market: a steady decline of active listings inventory.
In March 2020, the same month the coronavirus was first detected in Shelby County, there were 3,365 active listings in the Memphis area. By the end of 2020, that figure declined to 2,403.
Throughout 2021, the total local active listings fluctuated roughly between 1,950 to 2,500, according to MAAR data. As of December 2021, there were 2,165 active listings, a decrease of 1,200 listings from March 2020.
With fewer homes on the market, increased competition leads to higher home sale values across the board. This firmly reestablishes the Memphis area as a sellers’ market, according to local real estate experts.
New MAAR President Bill Stewart said he does not expect many of these trends to change much in 2022.
“Our inventory is still low right now. If you see inventory start to go up, then you will see a slight adjustment,” Stewart said. “We don’t think anything major is going to happen in the next year or so.”
Omer Yusuf covers the Ford project in Haywood County, residential real estate and tourism for The Commercial Appeal. He can be reached via email Omer.Yusuf@commercialappeal.com or followed on Twitter @OmerAYusuf.
This article originally appeared on Memphis Commercial Appeal: Memphis real estate: What to know about prices, inventory and more