38122
Memphis, Tennessee

The 38122 ZIP code shows a median sale price of $148,000 as of February 2026, marking a 1.3% decline year-over-year and signaling a shift from previous appreciation trends. Homes are moving relatively quickly at 32 days on market, yet only 14% of properties sell above list price, indicating limited competition among buyers. This combination of modest price erosion and subdued bidding activity suggests sellers have lost pricing leverage compared to tighter market conditions in prior periods.

Price-sensitive first-time buyers gain advantages in this environment, with the $148,000 entry point and weakened seller negotiating position creating room for below-ask offers on 86% of transactions. Investors seeking cash-flow properties may find favorable purchase prices given the year-over-year decline, though the 65 PropIQ score warrants careful due diligence on specific assets. Sellers face headwinds and should prioritize competitive pricing strategies, as the 32-day absorption rate won't compensate for overpricing in a market where most homes sell at or below list.

The 65 PropIQ Caution rating suggests underlying market stress that could drive further price softening if current trends persist beyond seasonal patterns. The negative year-over-year trajectory combined with limited above-list sales indicates demand has not kept pace with inventory availability. Monitoring monthly sales volume and days-on-market trends through spring 2026 will reveal whether this represents temporary correction or extended downward pressure requiring more significant pricing adjustments.