38120
Memphis, Tennessee

ZIP code 38120 in Memphis has recorded a median sale price of $464,250 as of February 2026, representing an exceptional 45.1% year-over-year increase that significantly outpaces typical market appreciation. However, homes are averaging 92 days on market, indicating buyer hesitation despite strong price growth. Only 5% of properties are selling above list price, a notably low figure that contradicts the aggressive price gains and suggests the surge may reflect limited inventory rather than robust demand momentum.

This market configuration favors sellers with existing equity who can capitalize on elevated pricing, particularly those not constrained by timing since the 92-day marketing period requires patience. The dynamics disadvantage buyers seeking value, as the 45.1% annual appreciation has compressed affordability while the low above-list percentage indicates limited competition for individual properties. Investors should exercise caution, as the disconnect between price acceleration and tepid bidding activity suggests thin transaction volume rather than fundamental demand strength.

The PropIQ score of 65 signals caution, reflecting concern that the 45.1% price surge lacks supporting fundamentals given the extended days on market and weak competitive bidding. This configuration typically precedes either price stabilization or correction as appreciation outpaces buyer capacity. Monitoring monthly sales velocity and any increase in price reductions will be critical, as the current metrics suggest this ZIP is experiencing a supply-constrained spike rather than sustainable growth trajectory.