The start of 2023 brought with it a slowdown in home sales in Memphis, Tennessee. But Memphis wasn’t the only area in the U.S. that saw this trend. Most of America did.
Although it started slow, January is typically a slow month every single year – so there is nothing to worry about there! And there’s still time for improvement in the real estate market. As we’ve seen, there has been a steady increase in demand prices in the real estate market this year as 2023 has progressed.
But what is causing the real estate market to be this way? Keep reading this guide to learn more about the Memphis real estate trends!
What Drives Memphis Real Estate to Be How It Is?
Every area and location in the United States has a certain driving force behind the real estate market. Some areas are sellers’ markets while others are buyers’ markets. And there is something behind the scenes causing this.
Here are a few of the driving forces behind the real estate trends in Memphis right now!
Low-Interest Rates
At the moment, one of the biggest driving forces behind the Memphis real estate market are the low-interest rates offered by lenders.
The Federal Reserve has kept interest rates at historic lows this year for several reasons. This means that it is much easier for people to buy homes even without having the initial upfront capital in their hands. Instead, they can get a mortgage.
How does this happen?
It’s because buyers can now access cheaper mortgage rates, which in turn increases their buying power and their ability to buy at all. This has led to an increase in demand for homes in Memphis.
More Residents
Another factor driving the Memphis real estate market is the influx of new residents into the city.
Memphis has become increasingly popular in recent years because it is such a great place to live. There are great job opportunities, fun entertainment options, and beautiful areas to spend your time on a weekend. Not to mention, Memphis is also close to some other great areas for a short weekend trip or two when you want a quick getaway!
Because of Memphis’ reputation, it has attracted many people who are looking for affordable housing options. Because of the affordability compared with other areas of the country, new residents are mostly young professionals who are moving to Memphis to take advantage of the city’s growing job market and upcoming social scene.
Local Economy
That takes us to the next point about what drives the Memphis real estate market!
The city has a diverse economy that includes industries like healthcare, logistics, and manufacturing. This has led to a huge increase in job growth in the city! And you know what this means…more demand for homes.
Pricing
In terms of what the price for an average home or apartment is in Memphis, the city has seen a steady increase. However, it is still more affordable than many other cities in the U.S.
The median home price in Memphis is currently around $180,000, which is a 7% increase from the previous year. This increase in prices is largely due to the increase in demand for homes in the city. This trend is expected to continue as there will be more people moving to the area in the next few months and few years.
Additionally, Memphis is an area that the real estate market tends to favor a luxury market. This has grown even stronger in recent years because of the growing economy in the city.
More About Memphis
Now that you know the real estate trends for Memphis in 2023, you have a better idea of what to expect if you choose to move here.
But what else is in it for you if you move to Memphis? The answer: so much!
But here are some that you definitely don’t want to miss (and will want to show everyone when they come to visit you!).
For starters, visit Graceland. This was the home of Elvis Presley (uh huh, uh huh!). It is now a museum that celebrates his life.
Although a huge touristy destination, you’ll definitely want to go at least once to get the real feel of it all!
Once you do that, you will definitely want to pay a visit to explore the National Civil Rights Museum. It is a powerful museum with a huge message to take in and understand.
For a more upbeat activity, be sure to visit the Memphis Zoo and walk along Beale Street. Beale Street has some amazing music, great food, and an even better nightlife. There is so much energy here, you won’t want to miss it!
Your Guide to Memphis Real Estate
If you are looking for rental properties in the area, we have plenty for you to choose from! After reading this guide, this is the information that you need to make an educated decision about what you want to do in terms of moving to Memphis.
But in our eyes, we think it is a great idea to move to Memphis!
You can check out the properties in Memphis here on our site to choose where you want to live! And if you have any questions at all, do not hesitate to reach out to us! We are here to answer any and all questions that you have about the real estate market and properties here in Memphis.
