Are you curious about the current state of the Memphis housing market trends in 2024? Memphis, Tennessee, is a city steeped in history, culture, and music. It's also a city with a thriving real estate market. The dynamics of the Memphis housing market paint a complex picture for both buyers and sellers. Despite fluctuations in prices, the Memphis housing market remains robust, characterized by steady sales volume and evolving buyer-seller dynamics.
The overall picture for October shows a slightly slower market compared to the previous year, with sales slowing down but still slightly ahead of 2023's numbers. Home prices have remained relatively stable, with some slight decreases in certain areas. However, inventory has increased, which could potentially lead to more opportunities for buyers in the coming months.
Let's delve into the details of the current Memphis housing market trends and what you can expect in the coming months.
Memphis Housing Market Trends in 2024: A Look at Sales, Prices, and Inventory
Memphis Home Sales
In October 2024, the Memphis housing market saw a total of 1,195 home sales, which represents a 20% decrease compared to the same time last year (Memphis Area Association of REALTORS®). Although this represents a slowdown, it's important to note that year-to-date (YTD), home sales have increased by a slight 0.6% when compared to 2023. This means that despite the monthly dip in sales, the overall picture for the year remains positive.
I believe this slowdown in October can be attributed to several factors, including rising interest rates which have made mortgages more expensive for some potential buyers. Additionally, we've seen a slight dip in consumer confidence which might be contributing to the hesitation in the market.
The data also indicates that the number of sales dropped slightly from September to October, with a 6.9% decrease from 1,284 sales in September to 1,195 in October. This slight dip is typical for the fall season, as the weather gets colder and people start focusing on the holidays.
While sales have cooled off a little in the latter part of 2024, we've also seen a steady stream of buyers interested in the Memphis area. There are certain areas that are still doing very well, and the market has been a bit more competitive in those particular regions. We can infer that the Memphis area is still an attractive place to live and invest in real estate, at least for a segment of the population.
Memphis Home Prices
When examining the Memphis housing market trends in terms of home prices, we observe a picture of stability. While the average sale price in October 2024 was $263,671, it experienced a minor decrease of 0.1% compared to October 2023. For the YTD period, we see an average sales price of $270,682, which is up slightly by 0.5% compared to 2023.
Looking at the median sales price, we find a slightly different trend. The median sales price in October was $204,900, reflecting a 2.4% decrease from the same period last year. For the YTD period, the median sales price has seen a decrease of 4.1%, which is down to $210,000 from $219,000 in 2023.
Table 1: October and Year-to-Date Comparison of Home Sales and Prices
| Metric | October 2024 | October 2023 | % Change | YTD 2024 | YTD 2023 | % Change |
|---|---|---|---|---|---|---|
| Total Home Sales | 1,195 | 1,494 | -20% | 13,394 | 13,309 | +0.6% |
| Median Sales Price | $204,900 | $210,000 | -2.4% | $210,000 | $219,000 | -4.1% |
| Average Sales Price | $263,671 | $263,902 | -0.1% | $270,682 | $269,466 | +0.5% |
The difference between the average and median sales prices can be explained by the presence of higher-priced homes which are driving up the average sales price.
I've noticed that in some areas of Memphis, home prices have remained relatively flat, while in others, we've seen slight decreases. For example, the Midtown and Downtown areas have seen stable home prices, but some outer suburbs have shown a slight price correction.
Memphis Housing Supply
Another key aspect of the Memphis housing market trends is the change in housing supply. In October 2024, the housing inventory increased by 0.35%, with 3,994 units listed for sale. This signifies an increase in options for potential buyers, which is a welcome change from the recent past when inventory was historically low in the area.
The rise in inventory is a positive trend, as it can lead to a more balanced market. When inventory is low, buyers often find themselves in bidding wars, driving up prices. However, with an increase in inventory, buyers might have more negotiating power, and we might see a stabilization in price increases.
Personally, I think that the increasing housing supply is a healthy sign for the Memphis housing market. It suggests that the market is becoming more balanced and that buyers are not under as much pressure to purchase quickly. This trend can potentially lead to a more sustainable and healthy market in the future.
Market Trends
Based on the data and my experience as a real estate investor, I've observed the following Memphis housing market trends shaping the market in 2024:
- Slowing Sales: The market has shown a decrease in home sales compared to 2023, but the year-to-date figures are still positive.
- Stable Home Prices: While some price decreases are evident, home prices have largely remained stable in 2024 compared to 2023.
- Increasing Inventory: The number of homes listed for sale has increased, giving buyers more choices and potentially more leverage in negotiations.
- Longer Days on Market (DOM): The average DOM for homes in October 2024 was 60 days, which indicates that homes are staying on the market longer than they have in recent times. This also signals a shift toward a more balanced market.
- Impact of Interest Rates: Higher interest rates are playing a role in slowing down sales, and it's something we need to keep an eye on.
Is Memphis a Buyer's or Seller's Housing Market?
Considering the Memphis housing market trends in 2024, I'd say it's shifting towards a more balanced market. While it was a strong seller's market for the last few years, with increased inventory and slowing sales, buyers are starting to gain more leverage.
It's not quite a buyer's market yet, but buyers are no longer facing the intense pressure to make quick decisions and are finding themselves in a better position to negotiate. If you're a buyer, now might be a good time to start seriously exploring the market. You'll find more options to choose from and may be able to get a better deal than you would have a few years ago.
If you're a seller, it's still a good time to sell, but you'll need to be a bit more strategic. You'll want to make sure your home is priced competitively and that it's in excellent condition to attract buyers in a market with more choices.
Are Home Prices Dropping?
While we have seen some slight decreases in both the average and median sales prices in October 2024, it's not necessarily an indication of a significant market downturn. The decrease in average and median prices is less than 1%. It's important to remember that the Memphis housing market has experienced strong growth in recent years.
The current data indicates a slight price correction, which is typical in a market that has experienced rapid growth. I don't think the slight decrease in prices we've observed represents a major shift in the market and expect that the prices are likely to stay relatively stable in the near future. However, if interest rates continue to rise, we might see a slightly more pronounced cooling effect on the Memphis housing market.
It's important to remember that home prices can vary significantly depending on location, size, features, and overall condition of the house. So while the overall trend might be a slight price decrease or stabilization, you may still see some homes appreciate in value, while others remain stable or see a slight dip.
The Memphis housing market trends in 2024 are pointing towards a more balanced environment for both buyers and sellers. While sales have slowed down a bit and there's an increase in inventory, home prices have remained relatively stable. This shift toward a more balanced market provides opportunities for buyers who may have been sidelined by the competitive environment of the past few years.
I believe that this is a positive sign for the future of the Memphis housing market. As long as interest rates don't dramatically increase and the economy remains somewhat stable, we should see the market continue to settle into a healthier state. The demand for housing in the Memphis area remains strong, and with more inventory and increased options, buyers will have more power in the negotiation process.
Memphis Housing Market Forecast 2024-2025
You're likely wondering about the Memphis housing market forecast, especially given the recent shifts in the national housing scene. The short answer is that the Memphis housing market is projected to experience a slight decline in home prices in the coming months, with a small home price dip expected in the coming months. However, the market is not expected to crash, and there's a chance for modest growth later in the forecast period. Let's dive deeper into the specifics.
October 2024 to September 2025: A Closer Look
I've been tracking the Memphis housing market for a while now, and based on the latest forecast from Zillow, I've put together some insights for you. Let's take a look at the Memphis housing market outlook:
| City | State | Home Price Prediction (October 2024) | Home Price Prediction (December 2024) | Home Price Prediction (September 2025) |
|---|---|---|---|---|
| Memphis, TN | TN | Down 0.3% | Down 1% | Down 0.1% |
As you can see from the table above, the forecast indicates a relatively slow and steady home price decrease in the next few quarters. While a home price decline of 1% is anticipated in December 2024, it's not alarming. By September 2025, a slight recovery is projected.
Comparing Memphis to Other Tennessee Markets
Let's compare Memphis's forecast to a few other major areas in Tennessee.
| City | State | Home Price Prediction (October 2024) | Home Price Prediction (December 2024) | Home Price Prediction (September 2025) |
|---|---|---|---|---|
| Knoxville, TN | TN | 0% | Down 0.2% | Up 3.8% |
| Chattanooga, TN | TN | 0% | Down 0.3% | Up 1.7% |
| Clarksville, TN | TN | Down 0.1% | Down 0.5% | Up 1.8% |
Compared to Knoxville, Chattanooga, and Clarksville, Memphis is projected to have a more subdued period in the near term. But, it's important to remember that these are forecasts, and the actual outcomes could differ.
Will Home Prices Crash in Memphis?
Based on current data and my experience, I don't anticipate a housing market crash in Memphis. The expected price changes are moderate, and while it's always difficult to predict the future with absolute certainty, it appears to be a “cooling off” period rather than a crash. Factors like population growth, a relatively affordable housing market, and a growing economy are expected to support the market.
Beyond 2025: A Glimpse into the Future
Extrapolating beyond the given data is tricky. However, I would think that in 2026, if the economy continues to perform moderately well, we could see a slight uptick in home prices. The recovery could be slow and gradual, but it's possible that we see the Memphis housing market stabilize and resume some of the growth seen in previous years.
Important Note: Housing market forecasts are just that – forecasts. Economic conditions, interest rates, local developments, and more can influence the actual market performance. This information is meant for general knowledge purposes and is not considered financial advice. If you're thinking about making real estate decisions, it's crucial to work with a trusted realtor and financial advisor.
Should You Invest in the Memphis Real Estate Market?
The allure of Memphis real estate is undeniable. Over the past decade, home values have skyrocketed, making it a magnet for investors seeking long-term gains. But is Memphis a guaranteed path to riches, or is there more to the story? Let's explore the data and explore the factors that make Memphis a compelling, yet nuanced, investment opportunity.
A Track Record of Impressive Growth
There's no denying the impressive long-term performance of Memphis real estate. Over the last ten years, Memphis has witnessed a staggering 110.69% appreciation in home values, translating to an average annual jump of 7.74%. This puts Memphis in the top 20% of U.S. cities for real estate appreciation – a dream come true for long-term investors who've held onto Memphis properties.
A Market with Staying Power
What makes Memphis's growth even more attractive is its consistency. Even when we zoom in on recent years, the market shows resilience. Over the last five years, Memphis continues to outperform, boasting a significant appreciation rate that surpasses both the Tennessee and national averages. This strong track record suggests a market with underlying fundamentals that support long-term growth, such as:
- Diversified Economy: Memphis is no longer a one-trick pony. While historically reliant on industries like manufacturing and agriculture, the city has seen a surge in healthcare, logistics, and education sectors. This diversification helps insulate the Memphis economy from downturns in any single industry. Here's some recent data to support this:
- The healthcare sector is now the largest employer in Memphis, accounting for over 100,000 jobs.
- Memphis is a major logistics hub, boasting three Class I railroads and the world's busiest cargo airport by volume. FedEx employs over 30,000 people in the Memphis area.
- The University of Memphis and St. Jude Children's Research Hospital are leading institutions that attract talent and investment to the city.
- Infrastructure Improvements: The city is investing heavily in infrastructure upgrades, including transportation networks and public amenities. This not only improves quality of life but also attracts businesses and residents, further fueling real estate growth.
- Favorable Tax Climate: Tennessee boasts some of the most tax-friendly policies in the nation:
- No state income tax: This translates to significant savings for investors, as they don't pay state income tax on rental income or capital gains from property sales.
- Relatively low property taxes: The average effective property tax rate in Tennessee is 0.73%, which is lower than the national average of 1.07%. This translates to lower holding costs for real estate investors.
A Recent Cool-Down: A Cause for Concern?
However, a responsible investor should always acknowledge current market conditions. The latest quarter (Q3 2023 to Q4 2023) did see a slight dip of 1.15% in appreciation. While this isn't a deal-breaker, it underscores the reality that no market is immune to short-term fluctuations. This recent cool-down could be due to:
- Rising Interest Rates: Nationally, rising interest rates have impacted affordability, potentially leading to a slowdown in sales.
- Increased Inventory: A slight increase in available properties could put downward pressure on prices in certain segments.
Memphis: A Market Tailored for Specific Investors
So, should you invest in Memphis real estate? The answer depends on your investment goals and risk tolerance.
Memphis shines for investors seeking:
- Stable Market: With a history of strong appreciation and a diversified economy, Memphis offers relative stability compared to more volatile markets. The city's economic growth is fueled by multiple sectors, making it less susceptible to downturns in any one industry. Additionally, the Memphis real estate market has a proven track record of consistent appreciation over the long term, even experiencing positive growth during the recent national economic slowdown. This stability makes Memphis an attractive option for investors seeking a reliable hedge against inflation and a secure investment for their future.
However, Memphis might not be ideal for:
- Fix-and-Flip Investors: The recent cool-down and time for renovations to show returns may not align with a quick-flip strategy. Investors seeking rapid profits might be better suited for hotter markets.
Beyond the Numbers: Considering the Bigger Picture
Remember, real estate is a local game. While Memphis boasts impressive numbers, it's crucial to go beyond the statistics. Consider factors like:
- Specific Neighborhoods: Memphis has a vibrant and diverse range of neighborhoods, each with its own unique character and investment potential. Research areas that align with your investment goals, whether it's appreciation potential, rental yields, or proximity to amenities.
- Property Types: Single-family homes, multi-unit buildings, and even student housing can offer varying investment opportunities. Consider the type of property that best suits your investment strategy and target market.
- Overall Market Trends: Stay informed about local market trends, such as job growth, population shifts, and new development projects. These factors can significantly impact the future performance of your investment.
Partner with a Turnkey Property Seller in Memphis
While a local realtor offers undeniable value, consider exploring turnkey property sellers for a streamlined investment experience in Memphis.
Turnkey property sellers specialize in identifying, acquiring, renovating, and tenanting investment properties. They handle the entire process, allowing you to invest passively and start earning rental income quickly. Here's how partnering with a turnkey seller can benefit you:
- Reduced Time Commitment: Skip the hassle of property search, renovations, and tenant placement. Turnkey sellers take care of everything, freeing up your time to focus on other endeavors.
- Expert Selection: Turnkey sellers have a proven track record of identifying properties with high rental potential in well-performing Memphis neighborhoods. They leverage their expertise to secure properties with strong appreciation potential.
- Hassle-Free Management: Many turnkey sellers offer ongoing property management services, ensuring your investment runs smoothly. They handle tenant issues, maintenance requests, and rent collection, giving you peace of mind.
Remember, due diligence is key! Regardless of your chosen path, conduct thorough research on both the Memphis market and the specific realtor or turnkey seller you're considering.
Best Memphis Neighborhoods for Buying a House (or Investment)
Thinking about investing in Memphis real estate? Here's a breakdown of the ten neighborhoods boasting the highest appreciation rates since 2000 (Neighborhoodscout). Keep in mind that appreciation is just one piece of the puzzle – consider these descriptions a jumping-off point for further research.
- Harbor Ave / Port St: This riverfront gem offers stunning views and the potential for exciting development projects. With the Mississippi River as its backdrop, this neighborhood could be ideal for those seeking scenic beauty and future growth.
- The Edge / Victorian Village: Steeped in history and boasting a charming aesthetic, The Edge / Victorian Village is a fantastic choice for those who appreciate a classic architectural style. Its close proximity to downtown Memphis adds to the convenience factor.
- North Memphis: A large and diverse area, North Memphis is brimming with potential for revitalization. With a mix of established communities and up-and-coming pockets, this neighborhood offers a variety of investment opportunities.
- Lauderdale Courts / Winchester Park: Once known as a cornerstone of blues music history, Lauderdale Courts / Winchester Park has undergone a revitalization, offering a unique blend of historic architecture and modern amenities. This area is a great option for investors seeking a neighborhood with character.
- Uptown: Known for its trendy shops, restaurants, and walkable streets, Uptown is a magnet for young professionals. With a vibrant atmosphere and a central location, this neighborhood could be a good fit for those targeting a specific renter demographic.
- Cooper Young East: This energetic district is a haven for community spirit. Cooper Young East boasts a variety of shops, restaurants, and green spaces, making it an attractive option for families and young professionals alike.
- North Memphis West: Similar to North Memphis as a whole, North Memphis West is an area on the rise. With potential for appreciation and a growing sense of community, this neighborhood could be a smart choice for investors with an eye for future opportunities.
- Vollintine-Evergreen: This family-friendly neighborhood is a favorite for those who value a peaceful environment. Vollintine-Evergreen is situated near Overton Park and the Memphis Zoo, offering residents easy access to green space and family fun.
- Cooper Young: A perennial favorite, Cooper Young offers a wide range of housing options, from historic bungalows to modern condos. This lively neighborhood is a great choice for investors seeking a mix of young families and professionals as potential renters.
- Midtown: The beating heart of Memphis, Midtown is a dynamic and constantly evolving neighborhood. From art galleries and theaters to trendy bars and local shops, Midtown offers something for everyone. This central location could be ideal for investors seeking a diverse tenant pool.
Appreciation rate is just one factor to consider when investing in real estate. Before making a decision, delve deeper into current property values, rental rates, crime statistics, and school quality in each neighborhood to make a well-informed investment choice.
