What to know before buying or selling a home this year
If you plan to buy or sell a home this year, it helps to understand what the housing market is looking like. One big change is that the housing market is expected to become steadier and provide buyers with more inventory to choose from, while sellers may need to work harder to stand out.
Memphis Market Snapshot: 2025 vs. 2024
According to Memphis Area Association of REALTORS®:
The number of homes sold (units): down 4.1%
The median sales price: up 6.8%
The average sales price: up 2.6%
These numbers show the market has been shifting. Prices have gone up, but fewer homes were sold year over year in Memphis.
As we saw in recent years, there wasn’t enough inventory to meet the demand. Now, with more homes on the market, buyers may not feel as rushed. However for sellers, this means more competition. Homes may take longer to sell if they cost too much or need a lot of repairs.
Home prices are also expected to slow down. This is good news for buyers who couldn’t afford a home before, but means sellers will need to price their homes carefully. Homes with competitive prices are more likely to sell faster.
Mortgage rates are another important factor. Rates may not return to the low levels we saw a few years ago, but they could stay steady or drop slightly in 2026. When rates are more stable, buyers can better plan their monthly payments. This may help more people feel ready to buy a home.
Because of these changes, learning about buying a home is more important than ever. Many people think they need perfect credit or a lot of savings to buy a home, which is not always true. Help is available through down payment assistance programs to help lower the cost of buying a home, like what we offer through our Cherry Mortgage program.
We also offer homebuyer education classes. These classes explain each step of the buying process, including debt-to-income ratio, budgets, loans and closing costs. Oftentimes, mortgage companies require buyers with 3% or less of their down payment to take a homebuyer education course before being approved.
For sellers, getting a home ready to sell is very important. Simple updates like small repairs, fresh paint, and a clean home can make it more appealing to prospective buyers. For those who need help fixing bigger issues in their home before selling may consider a home repair loan to help pay for those fixes.
Overall, 2026 looks like a promising year for real estate. Buyers should look into assistance programs, take education classes and get preapproved early. Sellers should focus on pricing, repairs and presentation. If you have questions about the selling or buying process, please reach out to us! We’re available by phone 901-272-1122 or by emailing info@uhinc.org.