Memphis, TN Metro Area Housing Market Analysis - August 2024

The Memphis, TN metro area housing market in August 2024 presents a complex landscape with both positive and negative indicators. The Median Sales Price has risen to $294,200, reflecting a year-over-year (YoY) increase of 3.2%. This upward trend in sales prices is mirrored by the Median List Price, which stands at $290,000, up by 1.0% YoY.

Price Per Square Foot metrics also show modest growth. The median Price Per Square Foot is $155.72, marking a 1.2% YoY increase. Meanwhile, the Median List Price per square foot has seen a more substantial rise of 4.7%, reaching $159.20.

However, the volume of transactions tells a different story. The number of Homes Sold has decreased by 11.4% YoY, totaling 1,301 units. Pending Sales have also dropped significantly, down by 14.3% YoY to 1,355 units. New Listings have followed this downward trend, decreasing by 12.1% YoY to 1,597 units.

Despite the decline in sales and New Listings, inventory levels have increased by 4.7% YoY, reaching 4,089 units. This has resulted in a Months of Supply figure of 3.10, which is a substantial 40.0% YoY increase. The Median Days on Market has also risen to 44 days, an 8.0% YoY increase, indicating that homes are taking longer to sell.

The average sale to list ratio has slightly decreased to 97.0%, down by 0.8% YoY. Additionally, the percentage of Homes Sold above list price has dropped to 16.8%, a 5.6% YoY decline. Price Drops have become more common, with 34.5% of listings experiencing a reduction, up by 7.4% YoY. The percentage of homes going Off Market Within Two Weeks has also decreased, down by 10.7% YoY to 30.8%.

In summary, while the Memphis housing market shows some positive signs in terms of price appreciation, the decline in sales volume and the increase in inventory suggest a cooling market. Buyers may find more opportunities as homes stay on the market longer and Price Drops become more frequent.