photograph courtesy andrey popov / dreamstime
Whether or not you’re moving, so many people are online, clicking on Zillow or Realtor.com all the time,” says Eleanore Maynard of Hobson Realtors. “People are fascinated with real estate.”
For the bored web surfer, guessing the current state of the Memphis real estate market is an idle pastime. But for those who are looking to buy or sell property, or for professionals like Maynard, it’s more than a curiosity. Maynard has nine years of experience as a realtor, but she says her life experience gives her a much broader perspective.
“I’m the daughter of a residential realtor, the granddaughter of one, and even my great-grandmother was a residential Memphis realtor,” she says. “So even though I just got my license in 2016, I feel like my whole learning curve looks a little different from most people that do this business,” she says.
When she started in 2016, everything seemed fairly normal. “Houses would go on the market,” she says. “They didn’t sell overnight; they would sit for a little while. Brokers would hold open houses. The interest rates were pretty normal and healthy.”
Then Covid arrived, “and our whole world changed. The rates dropped, and it was such a seller’s market. Sellers were getting top dollar. We would list houses; we would follow comps. We put them on the market thinking it was a fair list price, and they’d go sometimes up to $50,000 over the list price. It was very crazy!”
So, how’s the real estate market faring, five years later? “The rates are actually pretty normal and healthy, but to everybody who got their mortgage during that time — 2020 to 2022 — they don’t want to leave,” says Maynard. “They’re so comfortable with it, and many people, even if they didn’t move during that time period, they refinanced. So now what we’re seeing is [interest rates] of 6 to 6.25 percent, and people think that’s high, when historically, it really isn’t.”
While Maynard says she doesn’t have a crystal ball, she speculates, “I think if the rates dip to a little under 6, we’ll see a surge in buyers again.”
Nevertheless, she says, there is action in the residential market. “Those sales that we’re seeing, at least at Hobson Realtors, are some big sales, even up to the $2 million range. And those people are paying cash.”
photograph courtesy monkeybusiness / dreamstime
Greg Renfrow of NextHome Cornerstone Realty agrees that mortgage rates line up with historical norms. “The Memphis housing market is currently leaning in favor of buyers, with rising inventory and extended days on market, creating more opportunities and negotiating power,” he says. “The average home sales price is approximately $260,000 in Shelby, Fayette, and Tipton Counties, and while mortgage rates remain reasonable, buyers should carefully consider the mortgage rates when making a decision in regards to their purchasing power.”
Year over year, sales are trending slightly higher, says Sheryl Wells of Crye-Leike. “Home sales were up 1.6 percent this May, compared to last May. The market is active. There is enough inventory for buyers to have some selection. People are just being appropriately cautious, given the overall economy. Homeownership remains both a dream and an investment for many people.”
“In my office, the mood is balanced. Some agents are navigating challenges, but others are thriving. Buyer mortgage applications are up nationwide in 2025, which is a good sign that people are still engaging, just a bit more cautiously.” — Tim O’Hare
Tim O’Hare, principal broker with Berkshire Hathaway HomeServices, McLemore & Co. Realty, says, “The Memphis residential market is healthy — sales and inventory are both up. Compared to the past few years, we’re seeing a return to seasonal trends, with more activity and fewer days on market in spring and summer. Buyers have more options now, which has brought more caution on both sides — requests for repairs are up, and sellers are watching pre-approvals and earnest money more closely.
“In my office, the mood is balanced,” O’Hare continues. “Some agents are navigating challenges, but others are thriving. Buyer mortgage applications are up nationwide in 2025, which is a good sign that people are still engaging, just a bit more cautiously.”
New construction projects are bearing the brunt of recent inflation, Wells says. “New homes are priced higher, because of the rising cost of labor, land, and materials, so it pushes them out of reach for some first-time homebuyers or budget-conscious buyers.”
“One of the biggest challenges is affordability, especially with rising costs in the new construction market,” says O’Hare. “There’s also a general lack of awareness about available loan programs and grants — something realtors can help bridge. It’s more important than ever for listings to be market-ready and priced strategically. Sometimes a rate buy-down makes more sense than a price cut.”
“First-time buyers need to be sure to check out assistance programs,” says Wells. “This can include assistance with closing costs and rate buy-downs, which are becoming popular.”
“The rates are actually pretty normal and healthy, but to everybody who got their mortgage during that time — 2020 to 2022 — they don’t want to leave. … So now what we’re seeing is [interest rates] of 6 to 6.25 percent, and people think that’s high, when historically, it really isn’t.” — Eleanore Maynard
If anybody is in the residential market, either as a buyer or seller, Maynard says, “Be wary of Zillow. The estimate’s not always accurate. We’re still a very affordable town compared to a lot of neighboring cities, and that’s a huge advantage. We have some very nice homes that, in Nashville or Birmingham, would go for maybe even triple the amount. I think people need to give Memphis more of a chance because you can get a good bang for your buck here.”
Those relatively lower prices attract attention from money outside the metro, says Cathy Anderson, vice president of Crye-Leike Commercial. “The Memphis market continues to be a target market for investment, both from local and out-of-state investors, due to the income potential and stability of the area. We hear day in and day out that investors can get a better return here than they can in their home state.”
If you’re not ready to buy, but instead looking to rent an apartment, there’s good news, says Anderson. “The multi-family segment has seen a good amount of product enter the market, which has pushed their vacancy rate to about 14 percent as the market adjusts. Rents are relatively stable while this excess product remains. With new opportunities on the horizon for the Greater Memphis area, we look forward to new business entering our market, which should decrease vacancy rates in all segments.”
Anderson says the balance of transactions has changed in the Memphis market, favoring one segment. “Out of the four major segments of our market — retail, industrial, office, and multi-family — the retail market has become the recent front-runner, with vacancies at around 3.7 percent. It seems that as soon as one business closes, multiple retail entrepreneurs line up to compete for the space. Our team has worked with a large variety of clients recently, both on the leasing side and sales side. We recently completed a 1031 Exchange transaction for a client who purchased a fully leased retail property in Bartlett, near Bartlett’s first mixed-used development project, Union Depot. The buyer selected this property for three reasons: positive locations, future income potential, and strength of the tenant. All three of these factors are specific to our market.”
Office space rentals took a major beating during the pandemic, and rates have been slow to recover. But that may be changing, says Anderson. “The office market has been rebounding since Covid, with us seeing more activity in the office leasing segment. Vacancy rates have continued to trend downwards to about 10 percent, far below where they were post-Covid. More workers are returning to their offices, which has contributed to this positive trend. In addition, rents have increased slightly, showing positive signs for this segment. We recently brought a newly vacated data center to the market hoping to attract a new business locating here since the completion of the xAI supercomputer. Many predict that the Memphis area will see phenomenal growth in the tech industry within the next ten years, which should continue to improve vacancy and rental rates for the office segment.”
Anderson says Memphis’ major structural advantage — location, location, location, as the saying goes — means the final segment of the market has a bright future. “Memphis offers instant access to the Mississippi River, railroad crossroads, and major interstate systems to transport goods. Our central location puts us only a few hours away from 80 percent of the American population. And a strong blue-collar workforce, with TVA’s stable and cheap electricity, is attractive to heavy industry.”
The industrial market is holding steady, he says. “We anticipate more demand for space in the near future. With vacancy rates at about 9.3 percent at present, and with the entry of Ford’s BlueOval facility in Brownsville, we can expect those rates to fall as new suppliers enter the market near Ford’s facility.”
