Memphis real estate has taken huge hits since the downfall of the global economy and the recession that has hit the real estate market especially hard. The Memphis Business Journal reported on October 8, 2009, that “36 percent of residential listings in Memphis experienced a sales price reduction in September, the highest percentage on a list of the 50 largest U.S. cities.” In dollar terms, the total reduction in Memphis was about $27 million. These figures represent a large destabilization which is counterintuitive and in opposition of the growth and stabilization of many other real estate markets across the nation, especially in the northeast and Southern California. It is especially troubling that prices continue to shift downward with the low buying season approach as interested wanes towards the end of the year.
Fortunately, the news wasn’t all bad for Memphis homes for sale. On October 1, 2009, Luke Mullins composed a list of top-ten hard-hit housing markets that are ready to rebound in the U.S. News and World Report magazine. Memphis is actually ranked fourth on list because “in addition to its pleasant quality of life, Memphis’s position as an important transportation hub will keep its economy humming and housing demand strong.” It is also noted that Memphis’s low cost of living and strong healthcare system have made it a popular destination for retirees. Furthermore, foreclosures linked to subprime mortgages have dropped and many distressed properties have been purchased and taken off the market.
Unlike the real estate markets in fellow Tennessee cities Knoxville and Nashville, real estate in Memphis has suffered significantly since the start of the economic recession and crumbling national real estate market. While there has been remarkable improvement this year, the 2009 Real Estate Forecast produced by CNNMoney.com and Money Magazine claims that there will only be a decrease of 0.3 percent in home prices through the year. However, this comes on top of a 13.4 percent decrease in home prices since the peak of the housing market. At present, the median home price is $117,000, with a further 1.6 percent drop expected before the market bottoms out in the second quarter of 2010.
