Price drops have started in markets around the country. They are not big drops but there is definitely a market shift. The question is whether this is a seasonal adjustment or a real shift. Realtor.com has just put out a new ranking of where home prices are falling the most, compared to a year ago.
Price Drops from Austin to Boise and More
Cities like Ogden, Utah, and Boise, Idaho, that were saw rapid value increases as remote workers from across the country flocked to locations with more outdoor space and less expensive homes, are now reversing the upward trend in housing prices. Other hotspots like Austin, Texas, and Myrtle Beach, South Carolina, saw drops of 2% or more.
“These are some areas that saw really rapid price growth in the past several years — there was just enormous demand,” Realtor.com data journalist Evan Wyloge told Insider. “It stands to reason that in these places that were the hottest and where prices were rising the fastest, when mortgage rates cranked up, that put the brakes on transactions and overall buyer capacity and interest.”
With fewer transactions happening, sellers are more inclined to drop their prices. In fact, in some markets 50% of active listings have seen a price reduction. This could also help out younger buyers seeking to purchase a home. For example, 31% of homebuyers in Ogden from April to July were Gen Zers.
How Realtor.com Calculated Its Price Drop List
To calculate its list, Realtor.com looked at the change in the median list price per square foot for the 50 largest metro areas, comparing data for August 2023 and August 2022. It also included only one metro area per state to ensure the list had geographic diversity.
Dropping single-digit percentage points may not seem like a lot, but in these housing markets that have inflated over the years, that is thousands of dollars in savings, Wyloge said.
Metro Areas with Biggest Price Drops
Jackson, Mississippi is the 10th city with a price drop of 0.1% and a median listing home price in August 2023 of $287,000.
Honolulu, Hawaii is more affordable this month with a price drop of 0.5% from August 2022 and a Median listing home price in August 2023: $822,500.
Winter Haven– Lakeland, Florida has dropped by 0.9% and a Median listing home price in August 2023: $359,495
Boise, Idaho is down by 1.1% with a Median listing home price in August 2023: $584,950
Ogden-Clearfield, Utah is down by 1.1% too with a Median listing home price in August 2023: $571,995
Phoenix-Mesa-Chandler, Arizona saw a price drop of 1.2% and a Median listing home price in August 2023: $537,900
Austin-Round Rock – Georgetown saw a price drop of 2% and a Median listing home price in August 2023: $568,237
Stockton CA is down by 2.1% with a Median listing home price in August 2023: $585,965
Las Vegas- Henderson-Paradise NV is down by 2.7% year over year with a Median listing home price in August 2023: $456,848
