Home prices are tumbling in these 25 cities, giving hope to buyers while costing owners who bought at the peak up to $223 per day
- Year over year, home prices are falling in 25 of the country’s 100 largest cities.
- Mortgage rates are pushing down property values at the fastest rate in years.
- Here are 25 real estate markets where buyers can take advantage of lower-priced homes.
Property values are beginning to fall across the country, for better or worse.
According to a November 20 report from real estate research site Point2, houses are cheaper than they were last year in 25 of the 100 largest US real estate markets.
Many would-be homeowners have been priced out of the market this year as a result of high listing prices and crippling mortgage rates, and they have just experienced the worst quarter for home affordability since 1985.
Lower home prices are a dream come true for buyers, but a nightmare for those who have paid full price for properties in the last year, only to see their values fall shortly afterwards. For example, the average home in San Francisco is now $81,250 less than it was in 2022, implying that those who purchased at the peak have lost an average of $223 in home equity every day since then.
“Buyers who were determined to secure a home at the height of the pandemic buying frenzy are now feeling the market’s one-two punch: First by overpaying and now in home value loss,” the report said.
Exorbitant borrowing costs are ruining the housing market
Mortgage rates have fallen slightly since late October, but they remain near their all-time highs. Restrictive interest rates are squeezing demand because buyers can’t afford a mortgage or don’t want to pay it, while many owners are hesitant to sell because they’d then become buyers.
For the first time since 2015, a lack of willing buyers has put significant downward pressure on home prices. The drops are most visible in markets that soared during the pandemic.
“As mortgage rates choke buyers’ attempts at homeownership, home prices ground to a halt in many cities, and they’re dropping fast in others,” Hopulele said in a statement. “In fact, it’s the markets that rose the fastest that are now entering correction territory at the highest speed.”
Affordability issues are likely to persist until inflation returns to normal levels. At that point, the Federal Reserve may be willing to lower interest rates, causing mortgage rates to fall. Even so, homes may be out of reach for middle- to lower-income families for several years.
“Assume they cut 150 basis points. “OK, so you’re still talking about a 6%-something mortgage,” said Mike Skordeles, Truist’s head of US economics, in a recent interview. “It’s not cheap, and it’s certainly not as cheap as it was a couple of years ago.”
25 cities where home prices are falling
Homebuyers on the hunt may want to consider housing markets where property values have fallen in the last year, though they risk losing equity value immediately after purchasing.
The 25 metropolitan areas among the 100 largest US cities with the lowest single-family home prices in the last 12 months are listed below, along with each city’s year-over-year price change, median home prices in 2022 and 2023, and overall and average daily value losses from 2022.
1. Memphis, Tennessee
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Year-over-year price change: -17.1%
Median home price in 2023: $170,000
Median home price in 2022: $205,000
Overall value loss from 2022: $35,000
Average daily value loss from 2022: $96
Source: Point2
2. New Orleans, Louisiana
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Year-over-year price change: -9%
Median home price in 2023: $251,095
Median home price in 2022: $275,889
Overall value loss from 2022: $24,794
Average daily value loss from 2022: $68
Source: Point2
3. Atlanta, Georgia
[data:image/svg+xml,%3Csvg xmlns=’http://www.w3.org/2000/svg‘ viewBox=’0 0 1 1’%3E%3C/svg%3E](data:image/svg+xml,%3Csvg xmlns=’http://www.w3.org/2000/svg‘ viewBox=’0 0 1 1’%3E%3C/svg%3E)
Year-over-year price change: -8.4%
Median home price in 2023: $481,000
Median home price in 2022: $525,000
Overall value loss from 2022: $44,000
Average daily value loss from 2022: $121
Source: Point2
4. Detroit, Michigan
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Year-over-year price change: -7.9%
Median home price in 2023: $64,277
Median home price in 2022: $69,798
Overall value loss from 2022: $5,521
Average daily value loss from 2022: $15
Source: Point2
5. Kansas City, Missouri
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Year-over-year price change: -7%
Median home price in 2023: $260,500
Median home price in 2022: $280,000
Overall value loss from 2022: $19,500
Average daily value loss from 2022: $53
Source: Point2
6. Oakland, California
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Year-over-year price change: -6.8%
Median home price in 2023: $869,407
Median home price in 2022: $932,395
Overall value loss from 2022: $62,988
Average daily value loss from 2022: $173
Source: Point2
7. San Antonio, Texas
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Year-over-year price change: -5%
Median home price in 2023: $275,000
Median home price in 2022: $289,500
Overall value loss from 2022: $14,500
Average daily value loss from 2022: $40
Source: Point2
8. San Francisco, California
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Year-over-year price change: -5%
Median home price in 2023: $1,556,250
Median home price in 2022: $1,637,500
Overall value loss from 2022: $81,250
Average daily value loss from 2022: $223
Source: Point2
9. Cleveland, Ohio
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Year-over-year price change: -4.1%
Median home price in 2023: $118,000
Median home price in 2022: $123,000
Overall value loss from 2022: $5,000
Average daily value loss from 2022: $14
Source: Point2
10. Colorado Springs, Colorado
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Year-over-year price change: -3.2%
Median home price in 2023: $450,715
Median home price in 2022: $465,718
Overall value loss from 2022: $15,003
Average daily value loss from 2022: $41
Source: Point2
11. Philadelphia, Pennsylvania
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Year-over-year price change: -3.1%
Median home price in 2023: $392,500
Median home price in 2022: $405,000
Overall value loss from 2022: $12,500
Average daily value loss from 2022: $34
Source: Point2
12. Fort Worth, Texas
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Year-over-year price change: -2.9%
Median home price in 2023: $339,891
Median home price in 2022: $350,000
Overall value loss from 2022: $10,109
Average daily value loss from 2022: $28
Source: Point2
13. Las Vegas, Nevada
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Year-over-year price change: -2.8%
Median home price in 2023: $410,000
Median home price in 2022: $421,980
Overall value loss from 2022: $11,980
Average daily value loss from 2022: $33
Source: Point2
14. Henderson, Nevada
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Year-over-year price change: -2.7%
Median home price in 2023: $495,995
Median home price in 2022: $510,000
Overall value loss from 2022: $14,005
Average daily value loss from 2022: $38
Source: Point2
15. Boston, Massachusetts
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Year-over-year price change: -2.6%
Median home price in 2023: $796,250
Median home price in 2022: $817,500
Overall value loss from 2022: $21,250
Average daily value loss from 2022: $58
Source: Point2
16. Austin, Texas
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Year-over-year price change: 2.5%
Median home price in 2023: $575,000
Median home price in 2022: $590,000
Overall value loss from 2022: $15,000
Average daily value loss from 2022: $41
Source: Point2
17. Irving, Texas
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Year-over-year price change: -2.5%
Median home price in 2023: $377,500
Median home price in 2022: $387,000
Overall value loss from 2022: $9,500
Average daily value loss from 2022: $26
Source: Point2
18. Honolulu, Hawaii
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Year-over-year price change: -2.1%
Median home price in 2023: $1,301,264
Median home price in 2022: $1,328,763
Overall value loss from 2022: $27,499
Average daily value loss from 2022: $75
Source: Point2
19. Nashville, Tennessee
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Year-over-year price change: -1.9%
Median home price in 2023: $440,048
Median home price in 2022: $448,581
Overall value loss from 2022: $8,533
Average daily value loss from 2022: $23
Source: Point2
20. Long Beach, California
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Year-over-year price change: -1.4%
Median home price in 2023: $887,500
Median home price in 2022: $900,000
Overall value loss from 2022: $12,500
Average daily value loss from 2022: $34
Source: Point2
21. Oklahoma City, Oklahoma
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Year-over-year price change: -1.3%
Median home price in 2023: $256,750
Median home price in 2022: $260,000
Overall value loss from 2022: $3,250
Average daily value loss from 2022: $9
Source: Point2
22. Jacksonville, Florida
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Year-over-year price change: -0.8%
Median home price in 2023: $325,000
Median home price in 2022: $327,500
Overall value loss from 2022: $2,500
Average daily value loss from 2022: $7
Source: Point2
23. Chandler, Arizona
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Year-over-year price change: -0.6%
Median home price in 2023: $556,500
Median home price in 2022: $560,000
Overall value loss from 2022: $3,500
Average daily value loss from 2022: $10
Source: Point2
24. Toledo, Ohio
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Year-over-year price change: -0.4%
Median home price in 2023: $120,000
Median home price in 2022: $120,500
Overall value loss from 2022: $500
Average daily value loss from 2022: $1
Source: Point2
25. St. Paul, Minnesota
Year-over-year price change: -0.3%
Median home price in 2023: $288,434
Median home price in 2022: $289,207
Overall value loss from 2022: $773
Average daily value loss from 2022: $2
Source: Point2
