Memphis buyers are getting more power again because it takes 84 days for homes to sell
The Memphis housing market shifted further into buyer-favorable territory this week, with 45.2% of active listings receiving price reductions while homes spent an average of 84 days on the market. The metro’s 4,455 active single-family home listings represent a 17.6% increase over the same period last year, creating the region’s strongest bargaining power for buyers in recent history.
Price adjustments dominated the market landscape in Memphis, with nearly half of all sellers lowering their asking prices, compared to just 1.5% raising prices. The average list price was $335,000, down from $345,000 a year ago, while the price per square foot was $159.3.
Inventory increases as the sales rate decreases
Memphis recorded a housing supply of 4.4 months, exceeding both Tennessee’s 3.7 months and the national average of 2.9 months. The metro absorbed 246 homes during the week, a decrease of 30.5% from the 354 homes absorbed during the same period in 2024.
A total of 227 new listings were posted this 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.
Price pressure in the metro is increasing
The median list price of $335,000 in Memphis is well below the Tennessee median of $439,750 and the national median of $435,000. At $159.3 per square foot, homes in Memphis cost significantly less than the state average of $219.4 and the national average of $213.1.
For properties that required price reductions, median prices declined reflecting the market’s shift toward buyers, although the exact reduction percentages varied by property and metro location.
Memphis is a departure from the tighter state and national markets
While it takes 84 days for homes in Memphis to sell, both Tennessee and the national markets are developing 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 most buyer-friendly markets in the region.
The 17.6% annualized inventory growth and 30.5% drop in weekly absorption show that Memphis is moving away from the tighter housing conditions seen elsewhere.
Follow the 45.2% markdown rate as a key indicator of seller flexibility. Check to see if the 84 day average market time continues to expand or stabilize. Look for the 4.4 month supply to continue expanding above typical seasonal patterns.
Use the 45.2% markdown percentage when advising sellers on pricing strategy. Take advantage of the 84 day average time to market to set realistic customer expectations. Keep an eye on supply levels 4.4 months out to gauge whether buyer benefits will continue or decline in the coming weeks.
HousingWire used HW Data to uncover this story. To see what’s happening in your own local market, you can generate a housing market report. For enterprise customers looking to license the same market data on a larger scale, visit HW Data.
