Are you a new homeowner who wants to get a great deal on your new home? Maybe you are considering selling your current property and relocating to the beautiful Memphis suburbs. But, there are a few things you must know before heading into the Memphis real estate world in order to get the best deal on a new home, rental property, or house sale.
Understanding the Memphis housing market is crucial to any homebuyer or seller wanting to make a profit, get a great deal, and find the house of their dreams.
You should use a reputable professional from the Memphis Area Association of Realtors who can help you stage a home, price a house, put the property on the market, and sell the house in no time at all. However, you need to do some research beforehand on the Memphis housing market statistics and average home values.
Let’s check out a few facts and figures about Memphis real estate, home prices, and why Shelby County is the new American hotspot!
About Memphis
Memphis, Tennessee, is one of the most vibrant and upcoming cities in the entire United States. Some interesting facts make this city a hot spot for new house owners and home sellers. Did you know that Memphis was the Home of the Blues and the Birthplace of Rock and Roll? If you are a music lover, you will LOVE it here!
Memphis features tons of outdoor green spaces, music gigs, concerts, professional sports teams, yummy barbecue, and fantastic artwork. Suppose you are a young professional who wants a fun community, a small family looking for a safe suburb, or a newly-married couple who wants to set down some roots. In that case, Memphis could be the best place.
Some of the perks of living in Memphis is affordability. The cost of living here is almost 20% lower than the national average, with residents also saving on income tax and low median housing prices. Plus, Memphis has numerous job options and possibilities, featuring dozens of fortune 500 companies, low startup fees, and minimal taxes.
Some factors about Memphis that can influence the real estate price and residential real estate housing market are geography, weather, and climate.
Floods in Memphis cause property damage every year, with 14% of homes in Memphis at risk of flooding. Furthermore, the Redfin gives Memphis an 84 out of 100 storm risk, which is considered very high. The heat risk is 78 out of 100, and the drought risk is 34 out of 100.
Another consideration before buying property in Memphis is that public transportation is not the best compared to other cities. The car-dependent walk score earns 35 out of 100, with transportation only earning 22 out of 100.
Let’s check out some more Memphis housing market stats to get a good idea if this is a smart place to move for you and your family.
About the Memphis Housing Market
The Memphis housing market is considered ‘somewhat’ competitive compared to other areas in the country. Houses in Memphis that are up for sale receive five offers and sell in less than 35 days. Furthermore, the average price per square foot for a home in the surrounding area is $125, which shows a 4% growth since the previous year.
Memphis housing prices are up a whopping 14.2% since the previous year. As of September 2022, the median sale price comes to $206K. However, Memphis homes are taking a bit longer to sell than last year, coming in at approximately 35 days compared to the 28-day selling rate the previous year.
If you find a home you like, learn the cash offer process in a house to get the property ASAP. This knowledge will help you avoid any surprises when buying a home.
Memphis Housing Market Stats
Understanding the most common housing market trends in Memphis can help homeowners and house sellers get the best deal possible.
Memphis’s median sale price for all housing types is just over $205K.
The median sale price for single-family homes is $210K, which demonstrates a 12% increase year over year.
The median sale price for townhouses comes to just under $180K, demonstrating a 31.4% increase year over year. After a massive spike at the beginning of 2020, the housing price for townhouses dropped significantly to just over $100K in 2021 but has continued to rise since then.
The median home price for condos comes to $190K, showing an 18.8% increase in the year-over-year return. The cost of condos hit its peak at the beginning of 2022 as it broke the $200K mark.
The number of homes sold for all home types came to 666 in the 3-year analysis, showing a year-over-year return decline of 11.8%. Compared to July 2021, the number of homes sold decreased from 880 to 660.
The number of single-family homes is currently at 591, which is down 10.6% in the year-over-year analysis.
The number of townhouses is currently at 10 per month, which shows a vast 23.1% decrease over the years. A huge spike occurred in July 2021 and December 2021, when the monthly townhouse sales rose to approximately 18 per month. However, this number dropped last month, which shows it could be a better time for renters in the housing market.
Lastly, the number of condos sold per month comes to 49, which shows an 18.3% decrease over the years. There was a spike in the middle of 2021 and at the beginning of 2022. Still, the sales dropped off in the middle of 2022, possibly due to new foreclosures and fewer active listings on websites like Zillow or Redfin.
Another critical statistic when analyzing the Memphis housing market and the market report is the sale-to-list price. The sale-to-list price for all home types is currently 97.6%, showing a 2.2% decrease over the years. For those who are looking to sell a house fast in Cordova, the sale-to-list ratio and interest rates are vital statistics.
The sale-to-list price for single-family homes is around the same, coming in at 97.7%, showing a 2.4% decrease. This number of townhouses is 97.9%, showing a 2.3% decrease in the year-over-year return. Finally, the sale-to-list price for condos is 97.6%, showing just a 1.3% decrease in the past three years.
In the Memphis area, a fair number of houses are sold above the list price. 25.1% of all home types are sold above the list price. However, this number spiked in the middle of 2021 and the beginning of 2022 but has decreased in recent months. In the middle of 2021, almost 50% of all home types were sold above the listing price, compared to just 25% nowadays.
26% of single-family homes sold above the list price. There was a sharp decrease in the number of single-family homes sold above the list price after June 2022, dropping from around 50% to 27%.
20% of townhouses sell above the listing price. This shows an 18.5% decrease in the rental market over the 3-year return.
The only type of property that shows an increase over the years is the condos. 18.4% of condominiums sell above the list price, which demonstrates a 5% increase in the year-over-year return. If you want to sell a home fast, we buy houses Memphis residents love, so we can help you do just that!
Compared to the surrounding cities, the Memphis housing market is around the same competitiveness. Memphis has a “somewhat” competitive housing market and a Redfin score of 56 out of 100. This means that some homes get many offers, average homes sell below the listing price, and hot homes sell above the listing price.
Other nearby areas with similar real estate endeavors include Collierville and Germantown. Collierville has a Redfin housing score of 64 out of 100, with average homes selling 1% below the list price and hot houses selling 2% above the list price. Germantown scored 61 out of 100, with average homes selling 1% below the list price and hot homes selling 1% above the list price.
For homeowners who want to sell their previous home and relocate, we recommend using Cash home buyers in Tennessee to get the best deal possible!
Conclusion
Memphis is a typical Southern city with some vibrancy and cultural flair! If you are interested in moving here, selling a home, or relocating to the Memphis suburbs, check out the relevant Memphis housing market stats before you get started.
Understanding the real estate market and using a local agent in the East Memphis metro area can help you figure out how to brokerage your house, market your home for sale, and get the best deal possible when purchasing a new property.
After all, Memphis is one of the hottest places to move if you want to get outside, make new friends, listen to great music, and get a fantastic deal on a new home!
