Are you looking to buy a house in Memphis? Are you currently undergoing a real estate sale in the city? Whether you’re one of many home buyers or homeowners attempting to sell their single-family homes, you will need to learn about the Memphis housing market.
During the summer of 2022, the housing market in the Memphis area reached record median and average prices for home sales, according to the Memphis Business Journal. The Memphis Area Association of Realtors also emphasized how the city has seen continual growth in housing inventory.
To learn more about home prices over the last year in the Memphis real estate market, keep reading. Ready to get started? Let’s go!
Average Home Price in Memphis
On average, the home values of Memphis, Tennessee properties rose by 13.5 percent in June 2022 compared to June 2021. The average price reached $286,100. The median price, however, hit $250,000 in June 2022, which grew 11.1 percent over the previous year.
In December 2021, the average home sales price in Memphis reached $268,200. Since then, the average price has grown by more than $15,000. When prices for homes grow that fast, the number of renters increases in the rental market, as more families cannot shield the costs of buying a new home.
However, Memphis homes in the downtown area continued to drop from June 2021. The average price decreased by 15.5 percent from June 2021 to June 2022. Over those 12 months, the sales price dropped from $274,700 in June 2021 to only $232,000 by June 2022.
The median sales price in the downtown housing market fell even further by 33.8 percent. In June 2021, the median sales price was $300,000. It dropped to $198,750 after 12 months. Affordable housing has increased in the downtown area while decreasing in many other parts of Memphis and Shelby county.
For instance, the median and average prices grew in Germantown, Arlington, Southwind, and Millington. Since prices increased, the number of housing units sold in these areas has slowed.
The Zillow Home Value Index for Memphis houses reached $156,512, which was a 20.4 percent increase over the last year. That value represents the middle price tier of Memphis houses. Therefore, homeownership is becoming less attainable in Tennessee due to these rising prices.
Furthermore, Memphis home prices grew 5.9 percent in July 2022 compared to 12 months prior, reaching a median price of $188,000. Homes get sold in 30 days after being put on the market compared to an average of 29 days in July 2021.
The Memphis housing market is somewhat competitive, with some homes having multiple offers, while the average home is selling 2 percent below the list price in 30 days.
High and Low Home Prices in Memphis
The most expensive home sales in TN and the Memphis area reach $725,000 and $689,900. You can find a four-bedroom and three-bathroom house for as much as $650,000 in Memphis. You can also find reasonably priced homes with three bedrooms and 2.5 baths for $410,000 or a three-bedroom and two-bathroom house for $412,000.
You can also find low prices for homes in Memphis, including a $78,500 home sale for a place with three bedrooms and one bathroom. Further, low-priced homes in Memphis reached sale prices of $86,000, $120,000, and $80,000
You can also find houses for $175,000 or $190,000 with three bedrooms and two bathrooms. Essentially, the home prices of Memphis real estate vary greatly. You can find homes at prices higher than half a million dollars and others below $100,000.
The housing market trends in Memphis show that the average home takes about 30 days to get sold once it’s on the real estate market. The number of days a home remains on the market before sale depends on the price. It also depends on the marketing of the listing and the location you live in.
Home buyers can see how long a home has remained on the market, which may influence their decision-making. The longer a house stays on the market, the fewer buyers it will see, as these individuals may believe the house has more flaws than other properties.
In March 2022, the number of days a home spent on the market in the United States reached 38 days. Memphis homes at lower prices have often remained on the real estate market for an extended period.
Are you looking to sell a house fast in Tennessee? The basic steps you can take to ensure you can sell your place at a high price promptly include:
- Complete a pre-listing home inspection and relevant repairs
- Price the home accurately
- Stage the home to attract more buyers
- Use effective marketing strategies like social media and professional photography
Best Areas To Live in Memphis
The Memphis region is the fourth best place to live in Tennessee according to U.S. News. Memphis has numerous urban living locations with historical districts marked by Dr. Martin Luther King, Jr. and Elvis Presley. The city also has a vibrant music scene for artists to grow their careers.
The region also has various nonprofits and faith-based organizations to create a tight-knit community.
The cost of living in Tennessee is relatively low compared to other large cities or metro areas. The costs of food and other products and services are cheaper in Memphis than in other parts of Tennessee.
The best areas to live in Memphis include:
- Germantown
- Collierville
- Lakeland
- Olive Branch
- Hernando
- Bartlett
- Southaven
- Arlington
- Atoka
- Marion
The Memphis metro area has plenty of entertainment and activities for families, couples, and people of all ages. The region includes plenty of music, arts, and history, including a celebration of rock n’ roll and the blues.
If you’re looking to enjoy some music or a show in Memphis, you can check out bands playing at Beale Street or a show at the Orpheum Theatre Memphis. The Overton Park Shell amphitheater also holds concerts on the lawn.
Another fun activity in Memphis is spending the day in Graceland, known as the home of Elvis Presley. If you’re more interested in learning about history, check out the National Civil Rights Museum at the Lorraine Motel.
If you want a kid-friendly activity for your children, take them to the Memphis Zoo during the summer. Do you love a plate of tasty barbecue? If so, check out the Memphis in May International Festival, which hosts the World Championship Barbecue Cooking Contest every year.
You can also enjoy plenty of fun outdoor activities like biking and running. The mild winters and sunny spring days make Memphis a perfect place for outdoor recreation. Nonetheless, the spring does come with thunderstorms and a higher chance of tornadoes.
Essentially, Memphis is generally a wonderful place to live for families, couples, and young adults.
Sale-To-List Price Ratio in Memphis
The sale-to-list price ratio is the final sale price that a buyer pays for a house divided by the last asking price and expressed as a percentage. If the sale-to-list price ratio is higher than 100 percent, then the homeowner sold the house for more than the final asking price. Essentially, the home buyer put a bid at a larger price to outbid some other potential buyers.
However, if the sale-to-list price ratio is below 100 percent, then it sold for less than the asking price. In the Memphis metro area, the sale-to-list price ratio is 101 percent on average.
Some areas have ratios above 100 percent while others are lower. For example, Rochester, New York has the highest sale-to-list price ratio of 115 percent while the Utica, New York metro area has a low sale-to-list price ratio of 97 percent.
The most competitive housing markets have large and growing sale-to-list price ratios and less competitive or neutral markets have low and steady sale-to-list price ratios. In Virginia, the ratio has continued growing in recent years while the average sale-to-list price ratio has remained steadily above 98 percent since 2015.
Essentially, if you’re a buyer in Memphis, you can take a look at the average sale-to-list price ratio and decide whether to put a bid higher than the asking price or a bit on the lower end. With a ratio right around the middle at 101 percent, you will want to put forward a bid right at the asking price or slightly higher.
If you’re looking to determine the average sale-to-list price ratio for several homes in a particular neighborhood, add up every home’s ratio and divide the total by the number of homes to get the average.
Furthermore, 721 homes were sold in Memphis in July 2022, which is a 16.2 percent drop from the 860 houses sold in July 2021. Last year, the average days on the housing market was 29 days for the typical home. However, by July 2022, properties got sold after 30 days on the housing market in Memphis.
Average Days on Housing Market
While the average days the typical house spends on the real estate market in Memphis is 30 days, your home may end up on the housing market for a longer period. You or your realtor may not have priced the home appropriately or marketed it properly, which has left it on the housing market for too long.
Housing market trends and location also impact the amount of time a home remains on the market. Potential buyers know how long a house has remained on the market. That means the longer a house has stayed on the real estate market, the more likely buyers believe there is something wrong with the property.
As such, home sellers try to get their property sold much faster to entice buyers and get a higher bid. If you want to sell your place quickly, you will need to work with a top real estate agent. You should also get a pre-listing home inspection, price the property appropriately, and obtain landscaping services. These steps can help you sell your home more quickly.
You will also need to sell your place at the appropriate time. Homes tend to sell faster in the spring and early summer than during the winter. Houses newly put on the market tend to generate more interest, so you’ll want to market your property appropriately immediately.
The first few weeks should have the highest number of showings and open-house visitors. Afterward, if you didn’t get a bid, you may have a harder time selling your place. You may need to lower your asking price to get more buyers interested or renovate the house.
The best option is to price your home well on the first day you put it on the market. Along with repairs and renovations, you will want to deep clean your house and stage the rooms appropriately. Steam the carpets and remove dusty drapes. Declutter the house to ensure there’s plenty of space for buyers to envision their future home.
These are a few ways you can decrease the number of days your house remains on the real estate market.
Conclusion
The Memphis housing market provides plenty of wonderful urban living with historical places to reside in along with growing prices for the average home that sellers can benefit from. Depending on the size, neighborhood, and quality of the home, you can sell it for more than $700,000 or as little as $80,000.
While home values have increased over the last year, your home may still not garner a high price. To increase your house’s value, you may consider renovating the property, completing landscaping work, and even remodeling the kitchen and bathrooms.
However, if you don’t have time for renovations, you can try selling your place as is to cash home buyers in Memphis. The real estate market is tricky to handle, and dealing with buyers and real estate agents can be an annoyance- especially if you have to show your home! Luckily, we buy houses Cordova locals adore, so call us today!
