Memphis Housing Market: September 2024 Analysis

The Memphis, TN metro area housing market in September 2024 presents a complex landscape with varying trends across different metrics. The market is experiencing a decline in both median sales and list prices, while inventory levels and Months of Supply have increased significantly.

Price Dynamics

The Median Sales Price in Memphis stands at $285,000, reflecting a year-over-year decrease of 3.4%. Similarly, the Median List Price has decreased by 3.1% to $281,000. Despite these declines, the median Price Per Square Foot has increased by 2.8% to $155, indicating a shift in buyer preferences towards smaller, more affordable properties. The Median List Price per square foot has also risen by 4.2% to $158.07.

Sales Activity

Sales activity in the Memphis area has slowed, with 1,137 Homes Sold, marking a 9.4% decrease compared to the previous year. Pending Sales have also declined by 8.8%, totaling 1,267. This reduction in sales activity is accompanied by a 7.7% decrease in New Listings, which now number 1,538.

Inventory and Supply

Inventory levels have increased by 5.8% to 4,259 homes, contributing to a significant rise in the Months of Supply, which now stands at 3.7 months, a 50% increase year-over-year. This suggests a shift towards a more balanced market, providing buyers with more options and potentially easing upward pressure on prices.

Market Efficiency

The Median Days on Market have increased by 5% to 44 days, indicating a slower pace of sales. The average sale to list ratio has slightly decreased by 0.8% to 96.9%, suggesting that sellers are receiving offers closer to their asking prices. However, the percentage of Homes Sold above list price has dropped by 4% to 14.9%.

Price Adjustments and Off-Market Trends

Price Drops have become more common, with 31.1% of listings experiencing reductions, a 1.4% increase from last year. Additionally, the percentage of homes going off the market within two weeks has decreased by 12.7% to 26.8%, indicating a slower market pace and potentially more negotiation room for buyers.

Conclusion

The Memphis housing market in September 2024 is characterized by declining sales and list prices, increased inventory, and a longer time on the market. While the market is adjusting to these changes, buyers may find more opportunities and negotiating power, while sellers may need to adjust expectations and pricing strategies to align with current market conditions.