The Memphis, TN metro area housing market in January 2025 presents a complex landscape with varying trends across different metrics. The Median Sales Price has increased by 1.7% year-over-year (YoY) to $279,750, indicating a modest appreciation in home values. Meanwhile, the Median List Price has seen a more substantial rise of 7.5% YoY, reaching $295,000, suggesting that sellers are optimistic about the market's potential.

In terms of Price Per Square Foot, the Median Sales Price per square foot has risen by 2.6% YoY to $150.00, while the Median List Price per square foot has increased by 3.8% YoY to $160.15. These figures reflect a steady upward trend in property valuations, albeit at a slower pace compared to list prices.

The number of Homes Sold has decreased by 9.8% YoY, with 762 Homes Sold in January 2025. This decline in sales volume could be attributed to various factors, including potential buyer hesitation or affordability challenges. However, Pending Sales have shown a slight increase of 1.0% YoY, totaling 1,208, which may indicate a potential rebound in future sales activity.

New Listings have surged by 20.6% YoY, reaching 1,446, which suggests that more homeowners are entering the market, possibly in response to the higher list prices. Inventory levels have also increased by 4.7% YoY to 3,768, providing buyers with more options. The Months of Supply have seen a significant rise of 60.0% YoY, now standing at 4.90 months, indicating a shift towards a more balanced market.

The Median Days on Market have increased by 7.0% YoY to 58 days, suggesting that homes are taking slightly longer to sell compared to the previous year. The average sale to list ratio remains relatively stable at 96.2%, with a marginal increase of 0.1% YoY, indicating that homes are selling close to their asking prices.

The percentage of Homes Sold above list price has decreased by 1.7% YoY to 11.3%, reflecting a potential cooling in competitive bidding situations. Price Drops have increased by 6.1% YoY to 27.3%, which may indicate that sellers are adjusting their expectations in response to market conditions. Additionally, the percentage of homes going off the market in two weeks has decreased by 3.8% YoY to 24.8%, suggesting a slower pace of transactions.

Overall, the Memphis housing market in January 2025 exhibits a mix of rising prices and increased inventory, coupled with a decline in sales volume. These dynamics suggest a market in transition, with potential opportunities for both buyers and sellers as they navigate the evolving landscape.