A recent analysis found that Memphis had more homes hit the market than almost any other major market.
According to Realtor.com, Memphis had more than five times the national rate of newly listed homes, making it one of the most saturated markets in 2026. This abundant inventory, combined with potentially declining mortgage rates, could lead to an uptick in home sales through the end of the year. However, much will depend on broader economic factors, including the conflict in Iran.
The average rate for a 30-year fixed mortgage fell to 6.67% for the week ending Aug. 13, down from 6.69% the previous week, according to Freddie Mac. Despite the decline, rates remain higher than they were a year ago and crossed a key threshold last week for the first
time in 2026. By comparison, the average rate in 2025 was 6.58%.
Here's how Memphis' real estate market compares with the rest of Tennessee and the nation.
How has the housing market in Memphis changed this year?
Nationally, Memphis had one of the largest increases in active listings, up 11.5% from July 2025. This is more than five times the national increase of 2.1%.
This increase in supply shifted negotiating power toward buyers as sellers faced increased competition.
The median list price for homes fell 11.8% from July 2025 to $300,000. This was the only decrease in the Memphis area. This is the lowest the median list price has been since March, when it was $299,450.
The average number of days on the market rose year-over-year by 8.2% to 66 days, and the number of listings with price cuts was 24.2%, up 1.7% from the previous year.
How have real estate markets across Tennessee changed in 2026?
For the first time in years, the national market is shifting to favor buyers rather than sellers, and Tennessee is following this trend. Across the state, homes are staying on the market longer, prices are being reduced, and fewer homes are being listed.
Longer listing times and more price reductions favor buyers by easing competition and creating more opportunities to negotiate.
Listing price changes
Dyersburg had the largest increase in median list price, up 47.2% to $319,900. Memphis, on the other hand, saw the largest decrease, down 11.8% to $300,000.
Sevierville had the highest median list price at $600,000, which is down 8.8% from July 2025. Union City had the lowest median list price in Tennessee at $220,625, down 1.9% from 2025.
Active listing changes
Cleveland had the largest year-over-year increase in active listings, with 41.4% more listings for a total of 695. Nashville had the highest number of active listings at 12,192, up 12.1% from the previous year.
Martin had the largest decrease and the lowest number of active listings, down 20.3% from July 2025 to 77.
Days on the market changes
Kingsport had the largest percent increase in the number of days homes spent on the market, up 20% to 59 days. Martin had the largest percent decrease in the number of days homes spent on the market, with a 13.2% drop to 58 days.
Sevierville had the longest median time on the market at 86 days, up 3.3% from the previous year. Homes in Johnson City spent the fewest days on the market at 56 days, a 5.7% increase from July 2025.
New listing changes
Fayetteville saw the largest increase in new listings, up 76.5% to 60 new listings. Lawrenceburg saw the largest decrease, down 53.9% to 36.
Nashville had the highest number of new listings, with 4,208 total, down 2.1% from July 2025. Union City saw the fewest new home listings in July, with 26, down 7.1% year over year.
Price reduction changes
Dyersburg had the largest increase in the number of listings that reduced prices in July. The number increased 42.9% to 40 listings. Nashville had the most listings reducing prices, with 4,458, an 8.2% drop from July 2025.
Martin had the largest decline in price-reduced listings, with a 42.9% drop. Additionally, Martin had the fewest listings that reduced prices, at only 16.
Jordan Green covers trending news for The Commercial Appeal and Tennessee. She can be reached at jordan.green@commercialappeal.com.
This article originally appeared on Memphis Commercial Appeal: Memphis home listings surge 5x the national rate, shifting to buyers
