Memphis houses most overvalued in country, data shows

MEMPHIS, Tenn.– Memphis has the lowest median home prices in the country but also the most overvalued, according to one real estate website.

Carl Purifoy, a Redfin agent in Memphis, said Redfin’s latest data shows the median sale price of a home in Memphis is $190,000.

In a list of cities with the most overvalued homes, Memphis came in first, ahead of Buffalo, Milwaukee, Nashville, and Raleigh. Nashville took the fourth spot with a median sale price of $479,000.

“If you had a $200,00 house, it was selling for $230,000. It was always selling for over. Now people are trying to list their homes with those hopes, and they are overvaluing them, said Purifoy.”

Purifoy said that means sellers will have to be flexible about the asking price of their homes.

“Sellers have to get used to not getting above asking price or even asking price. There is a lot of negotiations,” said Purifoy.

Fitch Ratings says homes were overvalued by 11.5% at the beginning of the year, up from 11.1% the previous quarter.

“The amount you can get now is far less than the amount of home you could get two years ago,” said Purifoy.

Purifoy said with interest dropping, potential Memphis buyers should purchase a home sooner rather than later.

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