Are you looking to sell a house in Memphis, Tennessee? If so, you may want to learn more about the typical home prices in the area and the local real estate market. You will need to pay attention to interest rates and average house prices in Shelby county.
Before you list your home for sale, take a look at the information below to learn more about Memphis housing market trends. The Memphis real estate market has remained somewhat competitive, with sellers seeing multiple offers and selling a house in an average of 33 days.
The value of single-family homes has increased year-over-year in Memphis. To find out all about Memphis housing market trends, read the relevant info about the real estate market below. Ready to learn more? Let’s get started!
Average Days on Sale Trends
On average, the typical Memphis home stays 36 days on market before selling. You can expect an average of five offers on your property. That is an increase of eight days year-over-year. Further, the sale is usually complete in 33 days.
The homes with the most buyer interest have a sale pending in only about 15 days. The homeowners sell these “hot homes” an average of about 2 percent above the asking price.
Essentially, over the last year, the average days on the market for a typical Memphis house have dropped by eight days, which means the TN housing market may have started to cool down. Furthermore, the average single-family home sells about 2 percent below the asking price.
The real estate trends show that the number of home sales and the average home prices remained flat over the summer of 2022. They haven’t changed too much compared to July and August 2021. For example, Memphis home sales in August 2022 dropped by 6.6 percent when compared to August 2021.
The number of homes sold reached 1,917 that particular month, which is a drop from the 2,053 houses sold in August 2021. Essentially, the number of homes on sale takes a bit longer to sell in recent months as compared to the previous year.
Property By Type Trends
Homebuyers and sellers should also consider the types of homes for sale. Consider the real estate trends nationwide, as they may impact the local housing market as well.
Currently, the trends show that buying and selling property is growing in the realms of:
- Multi-family houses
- Apartments
- Complexes
- Industrial or commercial infrastructure
Data shows that the residential sector has seen a slowdown in growth among developed nations. However, some governments have provided affordable housing options for consumers. Nations like Canada, the United States, and Poland have helped their citizens afford new homes.
You can expect the rental market to grow stronger over the coming months, especially since North America holds the largest real estate market share. With home prices increasing, renters continue to rent instead of purchasing a house.
If you’re interested in buying property and making a real estate investment, you should consider the type of property to buy and which types have the best growth potential. Currently, infrastructure growth and commercial development have the best outcome for future growth.
You will also need to consider rezoning rules and any changes. Rezoning may get real estate investors more interested in a property as well.
Essentially, the typical trends for single-family home sales show that these sales have dropped in 2022. Throughout the United States, these home sales fell for seven straight months as of August 2022. The average prices have also fallen.
Areas of Growth for Property Owners
Despite general dropping home sales numbers nationwide, Memphis housing market trends show that the median sales price grew by 14.2 percent in September 2022 as compared to September 2021.
In particular, the median sales price hit $205,500 in September. So, you can expect to put your Memphis house on sale at an asking price of around $206,000. These areas of growth also include attractive homes getting sold 2 percent above the asking price in an average of 15 days.
Expensive home sales in TN usually reach above $600,000, but you can find some mansions for sale, which usually cost millions of dollars.
Furthermore, 79 percent of Memphis-based homebuyers looked to live within the metropolitan region. You will also see that prices are sometimes growing slightly. For instance, the median home sale price in August 2022 hit $223,000 in the Memphis area, which increased by $3,000 from $220,000 compared to August 2021.
The Memphis neighborhoods with the highest growth in median sales prices include Southwind and Whitehaven. For example, Southwind’s median home sale price grew by 46.2 percent by August 2022.
In Southwind, that price increased from $280,500 to a high cost of $410,000. Whitehaven saw a 21.4 percent rise during that same period, and Whitehaven’s numbers grew from $87,250 to more than $105,000. Real estate in Nashville has also seen steady growth throughout the summer of 2022.
Active listings reached 2,871 in August 2022 as well. That number grew by 32 when compared to July listings, and the inventory has grown from August 2021 numbers of 2,659 active listings. The average Memphis sale price per square foot grew by 12.2 percent over the last year to $133.
With more inventory and a slowdown in the number of sales, demand in the real estate market has started dropping. That shows the real estate market in Memphis changing into a buyer’s market instead of the seller’s market seen in recent years nationwide.
Areas of Decline for Property Owners
Despite the steady median list price, the Memphis housing market trends did have certain areas of decline for homeowners. The metro area, for instance, has seen a 14.4 percent decline in the number of homes sold year-over-year. In September 2022, only 646 homes were sold in Memphis.
The number of days the average Memphis home remains on the market has also increased, and homes are taking longer to sell at an average of 36 days in Memphis. The sale-to-list price has also dropped by 2.2 percent year-over-year to 97.6 percent. Further, the number of homes sold above the list price has fallen by 15.5 percent year-over-year to 24.6 percent.
An extra 11 percent of homes had price drops to get sold. Nearly one-third of houses (29.2 percent) had price drops. Furthermore, 21 percent of Memphis-based home buyers seek to move out of the metro area. Nashville is the most popular location among those looking to move.
The Memphis Area Association of Realtors released a report showing that home sales dropped by 6.6 percent in August 2022 compared to the prior year. Several areas showed a decline in the Memphis housing market for homeowners, providing a better opportunity for buyers.
Regardless, home values in Memphis have remained relatively steady in recent months. The future of the housing market may change in terms of home prices.
Government policies, the strength of the economy, and demographics tend to impact the real estate market. The interest rates for mortgages, demand for housing, and inventory levels will all play a role in future house prices.
Real Estate Market Value Growth in Memphis
The future for the real estate market in Memphis is expected to continue to hold steady and even increase slightly. Zillow forecasts that the housing market will experience a 5.2 percent increase from July 2022 to July 2023 in Memphis, Tennessee.
Currently, the Tennesee real estate market is still a seller’s market, with houses selling quickly at high costs above the asking price. Currently, the average home price in Tennessee is $303,453. However, the number of homes sold is slowly declining due to rising interest rates.
The appreciation rate in Tennessee over the last year was one of the highest in the nation at 5.06 percent during the first quarter of 2022. Job growth has also increased by 1.8 percent in the state, which may impact the economy and boost housing in Memphis, Nashville, Knoxville, and other Tennessee cities.
Home values have generally increased significantly in Memphis over the last five years. The future, though, may see home price growth slow down in the city.
Conclusion
The Memphis housing market trends stayed somewhat competitive, but the market did trend toward evening out during the summer of 2022. The number of homes sold in August remained relatively flat compared to last year, and the prices for houses have also stayed even.
Nonetheless, sellers have had to choose price drops, and the properties have remained longer on the market than in previous months. If you don’t want your home waiting around on the real estate market in the Memphis area, you may want to consider working with cash buyers.
To sell a house fast in Tennessee, reach out to real estate investors and cash home buyers in Memphis. We buy houses Cordova residents can’t stop talking about, so make sure to call us as soon as possible.
