Is the red-hot real estate market cooling down in Memphis?

MEMPHIS, Tenn. — Within days of listing her East Memphis home, Lisa Caufield said she received her first offer.

“Today, we got an offer,” Caufield told FOX13 last Wednesday. “And, we’re countering. And, we’ve got three other showings coming up.”

However, that first offer was $30,000 less than her listing price.

“I can’t say (the market) is hot,” Caufield said. “Our prices have gone down as far as what we thought we could be selling our house for.”

In the Memphis area, sales of properties dropped 17.5% when comparing July 2021 to July 2022, according to the Memphis Area Association of Realtors. The data year-to-date shows that sales dropped more than four percent from one year to the next.

“Because the market is starting to level off,  we won’t have this bidding war that we had before,” explained Cassandra Bell-Warren, the Division Vice President for Tennessee Realtors. “So for buyers, it’s going to be great.”

Bell-Warren said buyers can take their time to make a decision after touring a home because inventory has grown significantly.

“Six months ago, people were going to look at a house and they were having to make a decision right there because there were 18 other people outside waiting to see the same house,” Bell-Warren explained.

However, the price of the average property has also increased 6.2% over the past year, according to the data. In July 2021, the average cost of property was $252,595. In July 2022, the average cost was $268,133.

Caufield told FOX13 that she just hopes she can get a fair price for her current home that will help with the move back to Germantown.

“I really want the economy and everything to turn around,” Caufield said.