As other markets tighten, Memphis remains a bargain for buyers

The Memphis housing market shifted further into buyer-favorable territory this week, with 45.2% of active listings taking price reductions while homes sat on the market for a median of 84 days. The metro’s 4,455 active single-family listings represent a 17.6% increase from the same period last year, creating the region’s strongest negotiating position for buyers in recent memory.

Price adjustments dominated the Memphis market landscape, with nearly half of all sellers reducing their asking prices compared to just 1.5% who raised prices. The median list price settled at $335,000, down from $345,000 a year ago, while the price per square foot reached $159.3.

Inventory builds as sales pace slows

Memphis recorded 4.4 months of housing supply, exceeding both Tennessee‘s 3.7 months and the national average of 2.9 months. The metro absorbed 246 homes during the week, a 30.5% decline from the 354 homes absorbed during the same period in 2024.

New listings totaled 227 for the week, while 5.9% of properties were relisted after previously being removed from the market. The combination of slower absorption and steady new inventory pushed the market deeper into buyer-favorable conditions.

Pricing pressures mount across the metro

The $335,000 median list price in Memphis sits well below Tennessee’s $439,750 median and the national median of $435,000. At $159.3 per square foot, Memphis homes cost significantly less than the state average of $219.4 and the national average of $213.1.

Properties requiring price cuts saw median reductions that reflect the market’s shift toward buyers, though the exact reduction percentages varied by property and location within the metro.

Memphis diverges from tighter state and national markets

While Memphis homes take 84 days to sell, both Tennessee and national markets move faster at 77 days. The extended market time in Memphis, combined with higher inventory levels and widespread price reductions, positions the metro as one of the region’s most buyer-friendly markets.

The 17.6% year-over-year inventory growth and 30.5% decline in weekly absorption demonstrate Memphis’s divergence from tighter housing conditions seen elsewhere.

Track the 45.2% price reduction rate as a key indicator of seller flexibility. Monitor whether the 84-day median market time extends further or stabilizes. Watch if the 4.4 months of supply continues building beyond typical seasonal patterns.

Use the 45.2% price cut rate when advising sellers on pricing strategy. Leverage the 84-day median market time to set realistic expectations with clients. Monitor the 4.4-month supply level to gauge whether buyer advantages will persist or moderate in coming weeks.

HousingWire used HW Data to source this story. To see what’s happening in your own local market, generate a housing market report. For enterprise clients looking to license the same market data at a larger scale, visit HW Data.