The housing market in Memphis remains overvalued despite the slight drop in prices

According to the latest data from Redfin, Memphis, Tennessee, has been ranked as one of the major metropolitan areas with some of the most affordable median home prices. However, many experts still consider that homes remain overvalued.

Among these experts is MarketWatch, which states that homes are overvalued in 89% of the major metropolitan areas in the U.S.

On the other hand, Fitch Ratings’ analysis explains that housing prices in the first quarter of 2024 showed some early signs of recovery in the U.S. real estate market, as indicated by the rebound in both active and new property listings.
In its report, Fitch Ratings revealed that homes were overvalued by 11.5% at the beginning of the year, a slight increase from 11.1% in the previous quarter. Meanwhile, the National Association of Realtors reported that the median price of a home in the U.S. was $426,900 in June.

Carl Purifoy, a Redfin agent based in Memphis, says: “If you had a $200,000 house, it sold for around $230,000. Now sellers are still trying to list their homes at those inflated prices, but buyers aren’t biting, and homes are staying on the market.”

Current data from Fitch Ratings shows that Memphis experienced a 0.1% annual decrease in housing prices compared to the previous year.
According to Redfin, the median sale price of a home in Memphis was $190,000. However, foreclosure rates in the city have also started to rise, adding pressure to the local housing market.

In contrast to Memphis trends, and again according to Fitch Ratings data, the city of Nashville saw a 1.7% annual increase in housing prices, with a median sale price of $479,000.

MarketWatch, for its part, highlighted that a recent increase in housing listings is expected to push prices further downward. In areas where housing inventory has grown significantly, buyers are canceling deals or delaying purchases, forcing sellers to lower their asking prices. Evidence of this can be seen in Zillow data, which shows that nearly 26% of homes for sale had price reductions, and almost 60,000 home purchase contracts were canceled.

Available foreclosures:

Memphis: 1,200 homes available

Nashville: 850 homes available.

By Elías DaSilva | 10 de diciembre de 2024.