Kevin Myles- Your Memphis Realtor!

How has Memphis real estate been effected by the recession? Well first we have to go back a little in time…

In the 1980s, the recession we endured was partly due to the high double-digit interest rates. This hurt borrowers and stunted the growth of our economy. Today, many businesses think that the banks are still making it difficult for people to borrow money. This time it is not necessarily due to the interest rates, but the stricter and tougher criteria that the lenders have to meet. Has this caused us to experience yet another recession? This question is up for debate.

Loans seem to be more expensive and more difficult for borrowers to obtain, which is holding back our economic growth and causing problems in the real estate and construction industries. The construction industry alone has suffered from having multiple unsold and unrented properties and not enough funds for new projects. The effects seem to be now spreading into the job market and the amount of money consumers are spending. This has been demonstrated by recent declines in the retail market.

Attitudes since the free-spending, free lending days of the 1980s have changed dramatically. According to financial writer James Grant, “saving is on the rise and borrowing is on the decline”. Banks have also now adopted more cautious lending practices. They are denying credit to deserving borrowers. Commercial buildings now stand empty, and house prices have fallen. These are definite effects on Memphis real estate. Mitchell held at Wall Street’s Smith Barney, Harris, Upham and Company states: “At the moment, that fine line between slow growth and recession seems to be getting even finer.”

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Kevin Myles, REALTOR®

Sales Associate

Priority Properties

8924 Valley Creek

Arlington, TN 38002

901.213.8499 phone/text

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