If you’re wondering, “Is it a good time to buy a house?” in Memphis, 2025 data shows a clear trend. In fact, 2026 could be one of the best times to buy we’ve seen in years, especially for new construction homes.
Mortgage rates are dropping from their 2023-2024 highs. Inventory is finally loosening after years of tight supply. Builder incentives are at a five-year high. In a surprising turn, the price gap between new homes and resale properties has shrunk. Now, it’s the smallest it’s been in decades. In some markets, buying new construction is actually cheaper than buying used.
Is now a good time to buy a house in Memphis? Also, is it smarter to build with a home builder? Here’s what the housing market predictions say, what’s different in 2026, and how to know if this is your window.
What’s Happening in the Memphis Housing Market Right Now
Let’s start with where the Memphis housing market stands heading into 2026.
According to the latest market data, the median home price in Memphis is hovering around $350,000+ up about 4.3% year-over-year. That’s modest growth compared to the double-digit appreciation we saw in 2021–2022. Memphis is experiencing the slowest home price growth among major Tennessee cities. This is good news for buyers. It means homes are more affordable here than in Nashville or Knoxville.
Inventory in Memphis has improved. We’re at about 3.9 months of supply. This is still a seller’s market since a balanced market is around 6 months. However, it’s 8–12% better than last year. More homes for sale in Tennessee means more choices, less bidding pressure, and better negotiating room. Homes are moving fast, the average property sits on the market for just 19 days — but that’s down from the 10-day frenzy of 2022.
Mortgage rates are the story everyone’s watching in the housing market 2025. Rates peaked near 8% in late 2023. Now, they have dropped to the mid-6% range. The National Association of Realtors (NAR) expects them to fall further, reaching about 6.1% by the end of 2026. A half-point drop may not seem big, but it can open the door for thousands of new buyers. Plus, it can save you over $100 a month on a typical mortgage.
The bottom line: The Memphis housing market is stabilizing. It’s not a red-hot boom, and it’s not a crash. Economists call this a “rebalancing” — and for people asking is it a good time to buy a house, that’s actually ideal timing. Less pressure, more inventory, better rates.
Why 2026 Is Different: The New Construction Advantage
Here’s where the housing market predictions get interesting.
New construction homes now cost about the same as resale homes. In some cases, they are even cheaper. Nationally, the price gap between newly built homes and existing homes has shrunk to just 7.8% in 2026, the smallest premium on record. In some markets, the median resale home is actually more expensive than the median new build. That hasn’t happened more than a handful of times in the last 50 years.
Why? A combination of factors. Home builders near me and nationwide are slashing prices to sell inventory. According to the National Association of Home Builders (NAHB), nearly 40% of builders reduced list prices in 2025, with the average cut around 5%. On a $400,000 home, that’s $20,000 off the sticker price before you even start negotiating incentives.
And the builder incentives are aggressive. Builder incentives reached a five-year high in 2025.
Sixty-six percent of home builders offered concessions. These included mortgage rate buydowns, closing cost help, free upgrades, price cuts, or a mix of all four.
New construction homes offer benefits that resale homes don’t. They feature modern energy efficiency, which can lower utility bills by 20–30%. Plus, there’s no maintenance needed for the first few years. Homebuyers also enjoy full builder warranties and can customize finishes and layouts from the start.
New construction often has lower total ownership costs. This is due to lower insurance costs and no inherited maintenance issues. So, even if the purchase price seems the same, the overall expense can be less.
What the Experts Are Saying: Housing Market Predictions for 2026
If you want to know “is now a good time to buy a house,” it helps to listen to the people whose job it is to predict the housing market.
Lawrence Yun, Chief Economist for the National Association of Realtors, has been unusually optimistic about 2026. He calls it a “buyer’s window.” He predicts that existing home sales will rise by 14% nationwide. This will happen as mortgage rates fall and inventory gets better.
His exact words: “Lower mortgage rates will save the day.” If you’re wondering whether it’s a good time to buy a house, Yun predicts that 2026 will be one of the best years we’ve seen in a long time.
Robert Dietz, Chief Economist for the National Association of Home Builders, agrees that 2026 is shaping up as a better year for buyers looking at new construction homes. He notes that single-family home construction fell in 2025.
However, it’s expected to rise by about 1% in 2026. This increase will happen as builder financing costs decrease with Federal Reserve rate cuts. More homes from builders nearby, plus strong builder incentives, create new opportunities.
The 2025 housing market forecasts offer a surprising insight. In many areas, the median resale home costs more than the median newly built home. Dietz describes this as an “odd dynamic” that’s only happened two or three times in the last few decades.
Builder price cuts and smaller home sizes are driving this trend. Many homeowners with sub-4% mortgages aren’t selling. This keeps resale inventory tight and prices high for homes in Tennessee.
In Memphis, analysts predict that 2026 will bring “gradual stabilization” to the housing market. Prices will rise slowly, inventory will get better, and the wild rush of 2021–2022 won’t come back. That’s good news if you’re trying to buy thoughtfully rather than panic-buy. The housing market predictions suggest steady, sustainable growth, not boom, not bust.
How to Decide If Now Is a Good Time to Buy a House for You
So with all that context, how do you actually know if this is your window? Here’s a decision framework:
Step 1: Compare Your Total Monthly Cost — Not Just Purchase Price
Don’t just look at the list price of new construction homes versus resale homes. Look at what you’ll actually pay every month once you factor in mortgage rate, insurance, utilities, and maintenance.
A $350,000 new home at 5.5% interest can cost less each month than a $330,000 resale home at 6.5%. The new home has $120 monthly utility bills and low maintenance costs. In contrast, the resale home has $180 monthly utilities and a $3,000 HVAC repair in year two.
Run the numbers with your lender on both scenarios. When asking is it a good time to buy a house, total cost of ownership matters more than sticker price.
Step 2: Understand What Builder Incentives Are Actually Available
Not all home builders near me offer the same incentives, and not all builder incentives are advertised publicly. Some are reserved for buyers who use the builder’s preferred lender. Others are negotiable based on inventory levels or time of year.
Common builder incentives to ask about in 2026:
– Mortgage rate buydowns mean the builder pays upfront to lower your interest rate. This can be for the loan’s life or just for a short time.
– Closing cost assistance — Builder covers $5,000–$15,000 of your closing costs
– Free upgrades — Granite counters, upgraded flooring, finished garage, covered patio
– Price reductions — Direct cuts to the list price on spec homes or inventory that’s been sitting
At Meridian Premier Homes, we work with buyers to structure the best package based on community, floor plan, and timing. Wondering if it’s a good time to buy a house from a builder? It often depends on the builder’s current incentives. Ask early and understand what’s available before you sign anything.
Step 3: Factor in the Timeline
Building a home from the ground up typically takes 6–8 months from contract to move-in. If you need to be in a home within 60 days, Meridian has move-in-ready spec homes available with 30-60 day timelines in select communities. This gives you the benefits of new construction without the typical build wait. But if you have flexibility, building lets you control the outcome and avoid competing in bidding wars.
In 2026, a big plus is that there’s more inventory of move-in-ready homes from builders nearby. This means some buyers can find new homes that are either already finished or close to being done. That shortens the timeline considerably and still gets you builder incentives.
Step 4: Weigh the DeSoto County Tax Advantage
This is specific to Memphis-area buyers, but it’s a big one when asking is it a good time to buy a house here.
Property taxes in DeSoto County, Mississippi average about 0.75%, while Shelby County, Tennessee sits closer to 1.25–1.5%. On a $350,000 home, that’s a difference of $1,750–$2,625 per year — or $145–$218 per month.
Thinking about new homes for sale in our Olive Branch communities, like Southbranch or The Preserve at Cedar Bluff? The tax savings in Mississippi can help lower your mortgage payment. Over 30 years, that adds up to $52,000–$78,000 in savings.
Builder incentives and lower utility costs in new homes make building in DeSoto County very appealing.
Step 5: Think Long-Term
If you’re planning to stay in your home for 7–10+ years, new construction makes more financial sense. You’re buying a home that won’t need a new roof, HVAC system, or water heater for at least a decade. You’re getting modern energy efficiency from day one. And you’re building equity in a home that was designed for how people live in 2026, not 1996.
If you’re planning to flip the property in 2–3 years, resale might give you more flexibility and a faster exit. But for buyers asking is it a good time to buy a house as a long-term investment, the housing market predictions favor new construction.
What Memphis Buyers Are Choosing to Build Right Now
We’re seeing three types of buyers who are particularly active in new construction homes in 2026:
First-time buyers who got priced out in 2021–2022. Mortgage rates above 7% kept a lot of younger buyers on the sidelines. With rates dropping and builder incentives rising, many can now afford to build. This is especially true in DeSoto County, where tax savings reduce monthly payments. For these buyers, is now a good time to buy a house? The housing market 2025 data says yes.
Move-up buyers with equity. If you bought a home in Memphis 5–7 years ago, you’ve likely gained $40,000–$80,000 in equity. That down payment and today’s builder incentives allow you to get a larger home. You won’t have to raise your monthly costs much. These buyers are searching homes for sale in Tennessee and realizing new construction homes offer better value.
Relocating professionals. Memphis continues to attract corporate relocations and remote workers looking for affordability. Many buyers come from high-cost areas. They’re surprised to learn they can build a brand-new 2,500-square-foot home for under $450,000. This includes working with a top-tier builder in a good school district. When they ask is it a good time to buy a house in Memphis, the answer is almost always yes.
The most popular floor plans right now? These open-concept layouts include dedicated home offices and oversized primary suites. They also feature covered outdoor living spaces. People want homes that work for how they actually live in 2026 — not how families lived when their neighborhood was built in 1985.
Memphis Communities Where You Can Buy New Construction Homes in 2026
Meridian Premier Homes is building new homes for sale in various Greater Memphis communities. These areas have the right inventory, lot availability, and pricing that buyers want this year.
Southbranch — Olive Branch, MS Half-acre-plus lots with room to spread out. DeSoto County Schools. Property tax savings of $1,000–$1,500/year compared to Shelby County. Close to major employers and I-269. One of the top answers to “is it a good time to buy a house in DeSoto County?” for buyers prioritizing space and value.
The Preserve at Cedar Bluff — Olive Branch, MS One of our most established DeSoto County communities. Mature trees, community amenities, and a strong sense of neighborhood. New construction homes are popular among families and move-up buyers. They are searching for homes for sale in Tennessee and Mississippi.
Carrington Estates — Oakland, TN Fayette County. Larger rural-suburban lots for buyers who want space and lower density. Strong school ratings and easy access to both Memphis and Collierville. Great option for buyers searching home builders near me in Tennessee.
Hedge Rose — Fayette County, TN Newer community with flexible floor plans. Great for buyers who want a Tennessee address proximity without the Shelby County price tag.
If you’re trying to decide which community fits your commute, school priorities, and lifestyle, browse all of our current communities here or reach out to our team to schedule tours and ask about builder incentives.
Frequently Asked Questions: Is It a Good Time to Buy a House in Memphis?
Is it a good time to buy a house in Memphis in 2026?
Yes — 2026 is shaping up as one of the better buying windows in recent years. Mortgage rates are falling, expected to reach 6.1% by year-end. Builder incentives are at their highest in five years.
Plus, the price difference between new homes and resale properties is at historic lows. Memphis inventory is getting better, but it’s still competitive. Building new homes helps you skip bidding wars. Plus, you get modern energy efficiency and builder warranties.
Is now a good time to buy a house if I’m a first-time buyer?
Yes, especially if you’re looking at new construction homes. First-time buyers can take advantage of builder incentives. These include mortgage rate buydowns, which can be as low as 4.75–5.5%. They also get help with closing costs and lower monthly utility bills.
The housing market 2025 data shows this is one of the more accessible entry points for first-time buyers in years. Working with a home builder also lets you avoid bidding wars common on resale homes for sale in Tennessee.
Are new construction homes cheaper than resale homes in 2026?
In many cases, yes — or very close. The price gap between new homes and resale properties is now just 7.8% nationally. In some areas, median resale homes cost more than new construction. Aggressive builder incentives like rate buydowns, price cuts, and closing cost help make new construction homes very competitive. This is the strongest competition they’ve faced in decades.
What mortgage rates can I expect if I buy in 2026?
Market rates are hovering in the mid-6% range as of early 2026, with housing market predictions suggesting rates will drop to around 6.1% by year-end. Many nearby home builders are offering rate buydowns through preferred lenders. Some rates are as low as 4.75–5.5%. This can save you $200–$300 each month compared to market rates. This is one of the key builder incentives making 2026 a strong year.
Should I buy in DeSoto County or Shelby County?
It depends on your priorities. However, the numbers show that DeSoto County is a good choice for many buyers wondering if it’s a good time to buy a house. Property taxes in DeSoto County average 0.75% compared to 1.25–1.5% in Shelby County — that’s $1,000–$1,500 per year in savings on a $350,000 home.
DeSoto County also offers strong school districts and lower density. It has newer infrastructure and excellent new construction homes. If being close to downtown Memphis or certain Shelby County amenities is important, Tennessee homes for sale might be a better choice.
What builder incentives are available in Memphis right now?
In 2026, local home builders offer several incentives:
– Mortgage rate buydowns: Lower your rate by 0.5–2%.
– Closing cost assistance: Get $5,000–$15,000.
– Free upgrades: Enjoy new flooring, countertops, or appliances.
– Direct price reductions: Save about 5% on selected homes.
Incentives vary by community, inventory level, and lender. If you’re asking is now a good time to buy a house with a home builder, the answer often comes down to what incentives are available. Contact Meridian Premier Homes to see current offers.
Will home prices drop in Memphis in 2026?
Housing market predictions say unlikely. Memphis home prices are expected to grow modestly in 2026 — around 0.9–1.5% annually according to local forecasts. That’s slow, steady growth rather than a boom or a crash.
Inventory is improving, easing pressure on buyers. Demand stays strong. Also, lower mortgage rates will likely keep the market active. If you’re waiting for prices to fall significantly before asking is it a good time to buy a house, most economists say that’s not in the cards.
Are new construction homes more energy-efficient than resale homes?
Yes — significantly. New homes built to 2025–2026 codes are about 20–30% more energy-efficient than average resale homes. They save even more energy compared to homes built before 2000. That typically translates to $50–$150 per month in lower utility costs, depending on home size and usage. This is one of the hidden savings that makes new homes for sale more affordable long-term.
How long does it take to build a home in Memphis?
Most new construction homes in the Memphis area take 6–8 months from contract signing to move-in when working with a home builder. If you’re buying a move-in-ready spec home, the timeline can be just 30 to 60 days. If you’re asking is now a good time to buy a house but need to move quickly, home builders near me often have inventory ready or nearly complete.
The Bottom Line: Is it a good time to buy a house in Memphis?
If you’re wondering, “Is it a good time to buy a house?” in Memphis, the housing market conditions for 2025 heading into 2026 are very favorable.
Mortgage rates are dropping. Builder incentives are at five-year highs. The price gap between new construction homes and resale properties is the smallest it’s been in decades. Memphis inventory of homes for sale in Tennessee is improving but still competitive. And if you build in DeSoto County, the property tax savings alone can offset a significant portion of your monthly payment.
Does that mean everyone should buy new construction? No. If you need to move in 30 days, resale homes for sale are your only option. If you’re planning to relocate again in two years, the flexibility of resale might serve you better. And if you find the perfect resale home in the perfect location at the perfect price, buy it.
If you’re wondering whether it’s a good time to buy a house, consider a few things. If you have 6–8 months, want a home that fits your lifestyle, and care about energy efficiency, then working with a home builder in 2026 makes financial sense. You’ll get modern systems and zero deferred maintenance. The housing market predictions, the builder incentives, and the total cost of ownership all point in the same direction.
Meridian Premier Homes has been creating homes in Greater Memphis and DeSoto County since 2014. We’ve built through hot housing markets, slow markets, and everything in between. If you’re trying to figure out whether now is your time to buy, let’s talk.
