The real estate scene presents a complex picture as national home prices rise while certain markets like Memphis buck the trend. According to FOX13 Memphis, the average home price in Memphis saw a slight decrease of 0.3 percent from February 2023 to February 2024, countering the 6 percent increase across the country over the same period. Home sales in the area have surged by 18 percent. Clarence Brittmon, a local seller, sold his southeast Shelby County home in just two weeks, which took "the weight of the world off" his shoulders, he admitted in a statement obtained by FOX13.
On the flip side, renting has become increasingly attractive in cities including Memphis, as revealed by a GlobeSt.com report. In Memphis, renters saved more compared to buyers in February 2024 than a year prior, alongside other cities like Los Angeles, Nashville, and Phoenix. The Memphis market, previously more favorable to buyers, has shifted to become rent-friendly in the past year. Comparing the affordability, Pittsburgh saw the smallest buy-rent gap among the top 50 metros in February 2024.
This shift to a rent-dominated market aligns with another noticeable trend: a high percentage of home purchases by investors. Memphis, alongside metros such as St. Louis, Baltimore, and Birmingham, has been attracting investors, which, according to the report, "may be accelerating the growth of home prices, increasing the overall cost of home buying and tilting these markets further toward rent-favoring."
The real estate landscape, shaped by various factors, including interest rates and investment patterns, continues to evolve. As suggested by an X post from the Memphis Business Journal, early 2024 has seen a shift in trends that challenged the housing market the previous year, indicating a potential change in real estate affairs.
Through the early part of 2024, some of the trends that contributed to a challenging 2023 housing market have shifted, including homes sold. https://t.co/NR9oKtJtN1
— Memphis Business Journal (@MBJMemphis) March 27, 2024
