MEMPHIS, Tenn. — Memphis was listed as the first metropolitan city with one of the lowest median home prices, but they are still overvalued , according to data by Redfin.
MarketWatch says while homes in 89% of all major metropolitan areas across the U.S. are overvalued, Fitch Ratings analysis of home prices in the first quarter of 2024 reports early signs of a correction in the U.S. housing market indicated by the uptick in both active and new property listings.
Fitch Ratings say homes were overvalued by 11.5% at the beginning of the year, up from 11.1% the previous quarter.
According to the National Association of Realtors, the normal home in the United States was sold at a median price of $426,900 in June.
“If you had a $200,000 house, it was selling for $230,000,” said Carl Purifoy, Memphis Redfin Agent. “It was always selling for over now people are trying to list their homes with those hopes and they are overvaluing.”
Fitch Ratings’s analysis shows the annual change in home prices in Memphis was listed down 0.1% in June compared to last year. The median sale price of a home was $190,000 in Memphis, according to real-estate brokerage, Redfin’s data.
US home sales ended a 4-month slide in July amid easing mortgage rates, more homes on the market Unlike Nashville, which was also listed by Fitch Ratings, the city had an annual change of 1.7% and a median sale price of $479,000.
“A recent uptick in for-sale home listings is expected to bring down home prices,” said MarketWatch. “In some markets where housing inventory has surged, homebuyers are walking away from deals or simply holding off purchasing property, leading home sellers to cut prices.”
They say in July, more than 26% of homes listed on Zillow received a price cut, and that in August there were nearly 60,000 home purchase cancellations, according to Redfin.
“Sellers have to get used to not getting above asking price or even asking price,” said Purifoy. “There is a lot of negotiations,”
He says, the amount you can get now is far less than the amount of home you could get 2 years ago.
Home prices are expected to grow between 3% and 5% in 2024, according to Fitch Ratings.
MarketWatch says the Federal Reserve is expected to cut interest rates in September and December.
“If you are trying to buy a home, you should really buy soon,” said Purifoy.
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