The housing market in Memphis is starting to look very different in 2025. For the past few years, sellers have had all the power. Homes were in short supply, prices were climbing, and buyers often found themselves rushing into bidding wars to secure a house.
But now it is not so. More homes are coming on the market, prices are starting to rise, and buyers finally have some breathing room. In simple terms, Memphis is moving towards a buyer’s market – and this shift is opening new doors for those waiting for the right time to buy.
What’s Changing in Memphis Real Estate
The latest numbers tell the story clearly. The Memphis Area Association of Realtors (MAAR) reported that in May 2025, home sales increased by about 27% compared to April. This is a major growth, and this happened because more houses were listed, which we saw over the years.
Inventory – The number of available houses has reached its highest point since mid-2023. This means that buyers finally have options rather than settling for the only house in their price range.
Prices are still more than a year ago, but they are no longer running at the same speed. In fact, reports show that Memphis homes are about 16.9% higher than their long-term average values. That suggests the market is starting to cool and correct itself.
Another big change? Homes are staying on the market longer. During the boom, houses were snapped up in days. Now, buyers have more time to look around and make decisions without feeling pressured.
Why Buyers Are Gaining the Advantage
For buyers, this is a refreshing change of pace. Here’s why 2025 might be the best time in years to make a move:
- More Options – With inventory climbing, buyers no longer have to choose from just a few listings. There are more homes across different neighborhoods and price ranges.
- Room to Negotiate – Sellers are more willing to discuss prices, closing costs, or repairs since they know buyers have other options.
- Less Competition – The intense bidding wars that were common during the pandemic are slowing down.
- Opportunities for Cash Buyers – Investors and cash buyers are finding better deals, especially on homes that need a little work.
If you’ve been waiting for the market to shift, this is the window where buyers finally have the upper hand.
What Sellers Should Keep in Mind
This doesn’t mean it’s a bad time to sell. Memphis is still an active market, and well-kept homes in good locations are moving. But sellers need to adjust their expectations.
- Price Your Home Right – Overpricing could leave your home sitting unsold for weeks.
- Focus on Presentation – Staging, good photography, and proper marketing are now more important than ever.
- Be Flexible – Whether it’s negotiating on price or offering help with closing costs, flexibility can help attract buyers.
Sellers who adapt to the new market can still sell successfully—and sometimes faster than they think.
Looking Ahead: Memphis Housing Market Forecast
Experts believe Memphis will remain a balanced to buyer-friendly market for the rest of 2025.
Inventory: The inventory is expected to exceed the last two years.
Home values: The value of the house may be slightly flat or slightly dipped, especially in areas that were seeing a rapid price increase.
Investors: Investors will continue to detect opportunities, especially in old homes or distressed assets that can be rebuilt.
For buyers, it means more time and options. For vendors, it is realistic and ensures that the house stands in a competitive market.
FAQs
Q1: Is Memphis really a buyer’s market now?
Yes. With more homes available and prices cooling down, buyers finally have more choices and negotiating power.
Q2: Will home prices in Memphis fall in 2025?
Prices are expected to stay steady or drop slightly, especially in areas where values rose quickly over the last two years.
Q3: Should sellers worry about this market?
Not at all. Homes are still selling, but sellers should be realistic with pricing and open to negotiations.
Q4: Is 2025 a good time to invest in Memphis real estate?
Yes. Investors and cash buyers may find better deals now that homes are staying on the market longer.
Q5: Where can I track updated Memphis housing data?
The best place is the Memphis Area Association of Realtors (MAAR) or trusted national sites like Zillow and Realtor.com.
Spencer Shadrach is the founder of Spencer Buys Houses, a trusted home-buying company based in Memphis, TN. With over a decade of experience in real estate, Spencer is passionate about helping local homeowners sell their properties quickly and stress-free—no agents, no fees, and no repairs needed. Known for his honest approach and fair cash offers, Spencer has earned a reputation as one of the most reliable house buyers in Memphis. When he’s not guiding sellers through smooth closings, you’ll find him giving back to the Memphis community or spending time with his family.