While home prices will likely fall in the market majority this year, Memphis poised to see a sharp increase in price gains.
With a median home price of $280,000, CNNMoney.com forecasts a 7.5 percent gain by September 2012.
“You can get a very nice house for $138,000,” John Gnuschke, director of the Sparks Bureau of Business and Economic Research at the University of Memphis, told CNNMoney.com.
Unemployment in the region dropped a full percentage point to 9.4 percent in 2010.
“We have added jobs lately and we hope to add a lot more in 2011,” Gnushche said.
Also helping our case are the dwindling foreclosure filings, which dropped from 31 to 22 percent last year. With fewer homes going into inventory and a more proportionate ration of supply and demand, gradual recovery for home prices are forecasted over the next two years.