Number of foreclosed homes in Memphis increases

Foreclosure rates in an area of one US state are up 40 per cent and show no signs of slowing due to lending patterns. Tennessee’s Memphis Daily News reports the April number of foreclosed homes in Shelby county is up by 40.1 per cent compared with the same month last year.

Analysts used information from real estate company Chandler Reports and found 608 homes were foreclosed last month, even higher than a total of 545 from March. Quoted by the publication, executive director of the Frayser Community Development Corp Steve Lockwood said:

“Conventional wisdom is that it’s going to be tough for another year and a half, just because of the lending patterns.”

Foreclosed home auctions in other states have seen starting bids as low as $1,000 as real estate investors and first-time buyers attempt to snap up cut-priced properties.

The majority of the high Memphis number involved single-family homes.

Earlier this month the Memphis Area Association Realtors (MAAR) reported home sales in the area have dropped by 17.3 percent compared to the same time last year.

MAAR President John Snyder said: “While market activity remains brisk, elevated inventory and higher levels of foreclosures will continue to put pressure on pricing in the near-term.

“Buyers continue to have excellent opportunities in today’s market and should take advantage of these conditions while they can.”

MAAR has more than 5,000 members and is Tennessee’s largest Realtor organisation.