38002
Memphis, Tennessee

The 38002 ZIP code reports a median sale price of $415,000 as of February 2026, down 6.8% year-over-year, indicating softening price momentum in this Memphis market segment. Homes are moving at a moderate pace, averaging 46 days on market, while only 22% of properties sell above asking price. This combination of declining prices and below-majority bidding wars signals a clear shift from previous seller-dominated conditions, with buyer negotiating power increasing quarter-over-quarter.

Price-sensitive buyers gain tactical advantage in this environment, particularly those willing to negotiate on properties approaching 60+ days on market. The 22% above-list metric means roughly four in five transactions close at or below asking, creating room for offer strategies below list price. Sellers face headwinds and should price conservatively from listing day, as the -6.8% annual decline suggests overpriced inventory will sit longer. Investors seeking cash-flowing rentals may find cap rate compression easing compared to 2024-2025 peak pricing.

The PropIQ score of 60/100 signals caution, suggesting neither strong appreciation nor distress, but rather market uncertainty requiring active monitoring. With prices already down 6.8%, further declines depend on local inventory levels and mortgage rate movements through Q2 2026. Buyers should track days-on-market trends weekly; if DOM extends beyond 60 days consistently, expect additional 3-5% price softness. Sellers considering listing should move quickly before spring inventory potentially floods this price point.