The Memphis, TN metro area housing market in February 2025 presents a complex landscape with varying trends across different metrics. The Median Sales Price has decreased by 1.8% year-over-year, settling at $275,000. In contrast, the Median List Price has increased by 1.8% to $295,000, indicating a potential gap between seller expectations and buyer willingness.

Price Per Square Foot remains unchanged from the previous year at $150.02, while the Median List Price per square foot has risen by 3.3% to $161.36. This suggests that while sellers are optimistic about pricing, buyers are more cautious, leading to a stable Price Per Square Foot.

Sales activity has seen a notable decline, with Homes Sold dropping by 15.3% year-over-year to 910 units. Pending Sales have also decreased by 16.2%, totaling 1,233. New Listings have fallen by 17.1% to 1,343, indicating a contraction in market activity. Inventory levels have remained relatively stable with a slight decrease of 0.4%, totaling 3,752 homes available.

The Months of Supply have increased significantly by 60% year-over-year, reaching 4.1 months. This increase suggests a shift towards a more balanced market, although the Median Days on Market have decreased slightly by 1% to 59 days, indicating that homes are still moving at a reasonable pace.

The average sale to list ratio has seen a marginal decline of 0.1%, now at 96.8%, reflecting a slight decrease in the negotiation power of sellers. The percentage of Homes Sold above list price has decreased by 0.9% to 14.4%, further emphasizing the cautious approach of buyers. Price Drops have increased by 0.6% to 23.6%, suggesting that sellers are adjusting their expectations to align with market conditions.

Lastly, the percentage of homes going off the market within two weeks has decreased by 7.9% to 30.7%, indicating a slower pace in quick sales compared to the previous year.