VA Appraisal Slowdown

[glenn walker]

So now you go back to affordability. Builder is paying more on construction loans. They have to shave profit margin or jack price on new construction. It seems economy is rocking. LOL

In some areas its surprisingly stronger than expected. We always preach that Real Estate is very market and area Specific. Rural has always been hit with hard ups and downs. Ya just gotta know your market and have a finger on the pulse.

 

[glenn walker]

Just looking at Memphis Real Estate Data surprisingly strong when compared to other areas we look at. You guys just may dodge the bullet of increased rates. Out here our Median Sales price are so high, going from 3% to 7% on Jumbo Loans has crippled some areas. FHA & VA Loans have all but dried up in my neighborhood.

 

[KYLECODY]

Confirmed. Overall slow down across the board except for builders!

Whens the last time you walked into a tract builder office and chatted with the sales people? They've been ghost towns since Spring. Very few contracts and very little interest.

One told me its the slowest they've seen it ever. Almost zero walk in interest and the few contracts are the last remaining out of staters with cash. Tough when you have priced out the locals. Discounting has begun with numerous price drops and incentives. Im guessing those large tracts of land some bought up in the outer burbs at ridiculous prices will remain dirt or get foreclosed on before the next positive cycle. About a year ago Taylor Morrison just paid $12 million for 20 acres a couple miles from my house...Bad idea.

 

[CCAAMO]

Two different new home tracts by me have cut the listing prices by +- 10% over the past 30 days. Its always a bad sign the builders cut the price rather than just add upgrades or concessions etc.

 

[Ariba]

Just looking at Memphis Real Estate Data surprisingly strong when compared to other areas we look at. You guys just may dodge the bullet of increased rates.

I didn't know Memphis had its own Federal Reserve Bank Sweet.

 

[glenn walker]

I didn't know Memphis had its own Federal Reserve Bank Sweet.

There seems to be a lot you don't know but let me give you a hint. A much of Memphis is low prices and very affordable. Therefore interest rates dont have the same effect as in high cost areas. You may be in area where rates and out of State people are no longer migrating to. You need to know your market and not be depending on one client.

 

[Ariba]

There seems to be a lot you don't know but let me give you a hint. A much of Memphis is low prices and very affordable. Therefore interest rates dont have the same effect as in high cost areas. You may be in area where rates and out of State people are no longer migrating to. You need to know your market and not be depending on one client.

I know not to take your advice when it comes to appraising. Apparently, Glen is now the expert on Memphis. What can't Glen do? According to Glen Interest rates have no impact in low-priced markets. Maybe all minimum wage earners should move to Memphis.

 

[Tiffany Gibbons]

I know not to take your advice when it comes to appraising. Apparently, Glen is now the expert on Memphis. What can't Glen do? According to Glen Interest rates have no impact in low-priced markets. Maybe all minimum wage earners should move to Memphis.

I think maybe he meant VA specifically. It is much lower priced than anywhere else in Tennessee and the VFW said they expected an influx of Veterans (50,000) to move there over 2021-2022. Lots of jobs only Veterans are eligible for. I moved from Memphis to Middle Tennessee several years ago. The county I'm in now is the 2nd highest number of Veterans projected to move here, (21,000), they had to build a new VFW, expand the VA hospital, etc. but it is ridiculously overpriced here unless you go outside to rural areas. I'm seeing Veterans buying lots of acreage and building their own houses.

 

[glenn walker]

I know not to take your advice when it comes to appraising. Apparently, Glen is now the expert on Memphis. What can't Glen do? According to Glen Interest rates have no impact in low-priced markets. Maybe all minimum wage earners should move to Memphis.

I never said that I said Memphis market data looks extremely good and not being hit hard. One reason is based on incomes and it's local economy it's possible it never got over inflate like many other areas. Zoe knows his market and he is also a CG and on VA panel and I will defer to his better analyses on Memphis but if I lived or worked that City or market area I would be fairly positive.

 

[glenn walker]

Maybe Zoe who lives and works the City can update us on what he is seeing. If the data I am looking at is wrong I have no problem deferring to someone who lives and works there..But I was not referring to VA assignments but to overall sales and how prices are doing