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New report shows cooling of Memphis area housing market, but realtors don't necessarily think that's a bad thing

Memphis Area Association of Realtors data shows sales slowed in October compared to October 2021.

MEMPHIS, Tenn. — A new housing market report shows things cooling off in the Memphis area compared to last year. Still, even with that cooldown of late, Mid-South realtors believe there are still positive signs for both sellers and buyers. 

"From a realtor's standpoint, it's more what we call a balanced market," Danny Freeman, a realtor with Crye-Leike, said.

Freeman, a realtor for 37 years, is no stranger to witnessing the local housing market either surge or slow down.

"We are starting to see a little more leveling of the market right now," Freeman added. 

The Memphis Area Association of Realtors is backing that up. Its data showed in October a 25% year-to-year drop in total home sales, a 23% decrease in monthly sales volume, and a 7% decrease in median sales price compared to October 2021.

"Now sellers are getting to be a little bit more aware that their house has to be in better shape, they have to do the repairs they weren't wanting to do and they are probably going to have to negotiate more," Freeman said.

Still, realtors believe despite the latest numbers, both buyers and sellers have advantages, even with more costly interest rates compared to earlier this year.

"Yeah, rates are little bit higher, but just like any other trend, it's always been every three, four, or five years, people are going to refinance anyway," Integrity Mortgage Group Branch Manager Kevin Stafford said. 

"It's a good time to be a seller because you've got options to buy, it's a good time to be a buyer because you've got more houses to pick from and rates aren't going to stay where they are, you'll probably see them come back down in the next year or two," Freeman said.

The more than 3,000 available Memphis-area units for sale at the end of October compared to the nearly 1,900 in January. Realtors believe that higher inventory could be especially beneficial for first-time homebuyers.

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