Memphis, TN 38127 Real Estate Market Report

ZIP Code: 38127
Report Date: February 2026
Market Temperature: NEUTRAL
Scope: Single-Family Residential (SFR) listings and comps only

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Executive Overview

As of February 2026, the real estate market in Memphis, TN (ZIP: 38127) reflects a notable shift, with the median sold price recorded at $94,000. This indicates a challenging environment for sellers, as the market has experienced a down trend in prices. The overall market dynamics suggest that while desirable properties may still command strong sale prices, the broader market is characterized by elevated inventory levels and a slower sales velocity, as evidenced by the median days on market reaching 188 days. This extended timeframe indicates a cooling market where buyers may have more options and leverage in negotiations.

The median listing price stands at $104,850, creating a significant gap between asking and sold prices, which may suggest pricing friction as sellers adjust their expectations in response to market realities. The neutral market temperature further emphasizes a balanced but cautious environment, where economic signals are mixed, and transaction volume has notably decreased. This backdrop of elevated interest rate pressure may also contribute to the overall slowdown in sales activity, impacting buyer sentiment and market liquidity.

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Market Overview

This analysis is based on a sample of properties from this ZIP code (up to 200 sold properties and up to 100 active properties). The median prices below are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Market Metrics

Note: The property counts shown above represent only the properties analyzed in this report sample, not the total inventory for this ZIP code. Median prices are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Rental Market

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Property Taxes

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Liquidity & Velocity

Note: A Sale-to-List Ratio near 100% can occur when properties sell at or near their final listing price after price adjustments during the listing period, even when initial listing prices differ significantly from sale prices.

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Market Trends & Context

Understanding Market Temperature

A Neutral market indicates balanced conditions where neither buyers nor sellers have a strong advantage, typically characterized by flat price trends, extended but stable days on market, and moderate inventory relative to sales.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in Memphis, TN, around 5.84% are lower than the average 2026 origination rates which were near 6.34% for refinances.

Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.

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Key Findings

1. The median sold price of $94,000 indicates a down trend in market values, suggesting potential pricing adjustments for sellers.

2. With a median days on market of 188, the market is experiencing slower sales velocity, which may affect buyer urgency and seller strategies.

3. The median listing price of $104,850 creates a notable gap compared to sold prices, indicating potential pricing friction in the market.

4. The market temperature is currently neutral, reflecting a balanced environment but with signs of elevated inventory levels relative to sales activity.

5. Elevated interest rate pressure may be contributing to the overall slowdown in transaction volume, impacting buyer confidence.

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Notable Properties

The following 8 properties represent notable market examples and recent transactions that illustrate key market dynamics. These are illustrative examples selected for their significance (top sales, market benchmarks, quick sales) and are not the basis for the statistical calculations shown above.