2025 Q1: market updates
Hello, potential homebuyers! Let’s dive into some key real estate metrics in Collierville, TN! When looking at these real estate metrics, we can see how they are all interconnected and can give you valuable insights into the current market conditions.
First, let’s look at the Months Supply of Inventory, which is currently at 3.13. This metric tells us how many months it would take to sell all the homes on the market at the current pace of sales. A lower number indicates a seller’s market, while a higher number indicates a buyer’s market. In this case, 3.13 months supply suggests a fairly balanced market.
Next, we have the 12-Month Change in Months of Inventory, which has increased throughout the last year but has decreased 7.3% month over month as Pending listings have increased 6% while Sold listings have increased 18.2% month over month. This indicates that there are currently more homes available on the market compared to a year ago. This does give buyers more options to select from. However, with listings decreasing month over month and pending sales on the rise this could reflect lower inventory in the near future!
The Median Days Homes are On the Market is 52, which tells us the average number of days it takes for a home to sell. A lower number suggests a faster-moving market, while a higher number indicates homes are taking longer to sell. With 52 days on the market, buyers may need to act quickly on desirable properties.
The Sold to List Price Percentage is 97.9%, which means that homes are typically selling very close to their listing price. This could indicate a competitive market where sellers are receiving close to their asking price.
Lastly, the Median Sold Price is $525,000, which is up almost 1% month over month, giving buyers an idea of the typical price point for homes in the area. This can help buyers understand what they can expect in terms of affordability and potential offers.
Estimated property values in the Collierville, TN area have increased 2.7% Year over Year! Price per square foot has increased 15.5% month over month!
Overview of Collierville, TN โ Q1 2025
Steady Demand and Moderate Price Growth
– As a highly sought-after suburb of Memphis, Collierville continues to benefit from a strong community reputation, excellent school districts, and attractive amenities.
– While it is still relatively early in 2025, local agents are generally reporting stable or slightly increasing home prices compared to the same period the previous year. Buyers remain motivated, particularly for well-maintained homes priced competitively in established neighborhoods.
Inventory Levels
– Over the last few years, Collierville has generally experienced tight inventory (low numbers of homes for sale), reflecting broader national trends of constrained supply. Although more new-construction projects have come online, Q1 2025 likely still feels the effects of limited inventory.
– This dynamic supports a somewhat competitive market, especially for single-family homes in desirable school zones.
Buyer Behavior
– Rising mortgage rates in the latter part of 2023 and into 2024 may have tempered some buyer enthusiasm; however, Colliervilleโs strong local economy and popularity among families and professionals has kept demand relatively stable.
– Sellers who price their homes aggressively and make necessary updates/repairs tend to see great success.
Days on Market (DOM)
– The average time a house stays on the market (DOM) in Collierville has historically been lower than many neighboring areas. Q1 2025 appears to follow this trend, though it may be modestly longer than the record lows seen in certain periods of 2022 and 2023.
– Homes needing significant cosmetic or structural work typically linger longer, given that buyers are more cautious in an environment of slightly higher financing costs.
2. Predictions for the Remainder of 2025
Slight Increase in Inventory
– Ongoing new construction and the potential for more sellers entering the market as they โunlockโ equity could modestly boost inventory in mid- to late-2025. However, donโt expect a significant surge that might drastically soften prices. Collierville tends to balance out, with gradual increases in new home supply.
Steady to Moderate Price Appreciation
– Barring any large-scale economic shocks, Colliervilleโs home prices are poised to continue a gradual upward trajectory. This is driven by sustained buyer interest and relatively limited supply.
– Should mortgage rates stabilize or slightly decrease, that could spur more buyer activity, keeping upward pressure on prices.
Continued High Demand for Move-In-Ready Homes
– Well-kept, move-in-ready properties in Colliervilleโs popular neighborhoods are likely to receive strong offers, particularly if they are within the mid-market range. Homes that show well, are appropriately priced, and are close to schools, parks, and shopping will remain competitive.
Emphasis on Upgrades and Quality
– With buyers becoming more cautious about stretching their budgets, turnkey homes with modern finishes and energy efficiencies will continue to command a premium. Sellers may benefit from investing in strategic renovations before listing (kitchens, bathrooms, and general curb appeal).
Local Economic Factors
– Collierville has benefited from a mix of local industry, proximity to corporate headquarters in Memphis, and ease of commuting options. If job growth remains positive in the broader Memphis area, and Collierville continues to attract residents seeking a suburban lifestyle with top-rated schools, it is likely to see healthy real estate market conditions into the second half of 2025.
3. Key Takeaways
– Stable Growth: Q1 2025 in Collierville looks to be following historical patterns of stability with modest price growth and ongoing buyer demand.
– Low to Moderately Rising Inventory: While there may be a slight easing as we move through 2025, inventory will likely remain tight enough to support continued (but not extreme) seller advantages.
– Competitive Market: Buyers seeking quality homes in desirable neighborhoods will need to be prepared and move quickly, though the bidding frenzies of past years may have cooled somewhat.
– Looking Ahead: With strong local fundamentals (schools, amenities, and job access), Collierville is poised to maintain a healthy real estate environment for the remainder of 2025, barring broader economic shifts.
Overall, these metrics paint a picture of a market that is fairly balanced with a good amount of inventory, but still competitive with homes selling close to their listing price. Buyers should be prepared to act quickly and make strong offers in order to secure their desired property in this market. Now may be an ideal time to begin or revisit your home search. Happy house hunting!
