Memphis, TN Housing Market Report

The Memphis housing market is currently experiencing a notable shift toward buyer-friendly conditions as we conclude 2025. With a median home value of $141,666, the market has seen a year-over-year decline of 2.4 percent. This cooling trend is further evidenced by a significant 10.19 percent increase in active inventory, bringing the total number of available homes to 5,039. For the first time in several years, buyers have more leverage, supported by a sale-to-list ratio of 0.98, which indicates that most properties are selling for slightly less than their original asking prices.

Price trends over the last six months show a consistent, albeit gradual, monthly decline. Since July 2025, when values sat at $143,121, the market has shed value every single month. This downward trajectory is likely driven by the combination of rising inventory levels and longer holding times, as the average days on market has climbed to 74 days. While home values are softening, the rental market remains resilient, with median rents rising nearly 2 percent to $1,217, suggesting that while purchasing demand has cooled, the fundamental need for housing in the Memphis metro area remains steady.

Looking ahead, the Memphis market presents a unique window of opportunity for different stakeholders. For buyers, the increase in inventory and the slower pace of sales provide a chance to negotiate more favorable terms and avoid the bidding wars that characterized previous years. Sellers, on the other hand, must be prepared for a more competitive environment; pricing a home accurately from the start is critical now that homes are sitting on the market for an average of 10 weeks. Investors may find the current climate particularly attractive, as the gap between softening purchase prices and rising rental rates improves potential yields across the tri-state metro area.