20 US cities where home prices are actually falling – check out where first-time buyers can find a bargain

SEVERAL cities across the country in rural and metropolitan areas are seeing a drop in home prices.

The latest quarterly report from the National Association of Realtors (NAR) found that one in ten housing markets saw a year-over-year decline in home prices in the fourth quarter of 2022.

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Some of these markets are in more expensive parts of the United States, such as B. Southern California.

This is mainly because these areas have experienced “lower employment and more frequent migration of residents to other areas,” said Lawrence Yun, NAR’s chief economist.

“A slowdown in home prices is underway and is being welcomed as the typical home price has risen 42 percent over the past three years,” Yun added.

Yun also explained that far fewer Metro markets posted double-digit gains in the most recent quarter.

Decreasing prices

Below is a complete list of cities across the country where house prices have declined year-on-year from the largest to the smallest year-on-year as of the fourth quarter of 2022:

1. San Francisco, California
2. San Jose, California
3. Cumberland, Maryland
4. Boise, Idaho
5. Canton, Ohio
6. Sherman Denison, Texas
7. Sacramento, California
8. Memphis, Tennessee
9. Topeka, Kansas
10. Charleston, West Virginia
11. Boulder, Colo
12. Detroit, Mich
13. Anaheim, California
14. Austin, Texas
15. Los Angeles, California
16. Bismarck, North Dakota
17. Kankakee, Illinois
18. Youngstown, Ohio
19. Reno, Nevada
20. Jackson, Mississippi

Among the 20 cities, San Francisco saw average home prices fall 6.1 percent year-over-year — giving single-family home buyers prices of about $1,230,000.

San Jose, California, and Cumberland, Maryland followed closely with declines of 5.8 percent and 4.1 percent in median prices.

The smallest drop from Q4 2021 to Q4 2022 was in Jackson, Mississippi — which saw just a 0.1 percent drop in price.

This left buyers with an average price of $227,500.

While the price drop is good news for those looking to buy their first homes, it remains unclear whether it will continue into 2023.

“Even with a projected decline in home sales this year, prices are expected to remain stable in the vast majority of markets due to extremely limited supply,” Yun said.

“Furthermore, there are signs that buyers are returning as mortgage rates fall, even with inventories near historic lows.”

The National Association of Realtors did not immediately contact The US Sun for comment.

Existing home sales for January 2023 are expected to be released on Tuesday.

Amid the price declines, the NAR also noted that nine out of 10 markets saw home prices increase.

In addition, 18 percent of the 186 areas surveyed reported double-digit price increases.

EXPECTED PRICE DECLINES

Strategists at Goldman Sachs have previously estimated that four cities across the country could see sharp falls in housing prices.

Specifically, the bank has indicated that Austin, Phoenix, San Diego and San Jose could all see home prices fall by more than 25 percent.

By the fourth quarter of 2023, strategists say house prices across the country could fall 6.1 percent year-on-year.

Experts say the expected drop is due to interest rates for borrowing mortgages, as well as low inventories.

Taken together, this seems to have prompted many potential buyers to wait for prices to drop.

ADVICE FOR FIRST TIME BUYERS

What to do when buying a home depends on your financial situation and where you live.

However, financial planner Matthew Frankel revealed two important things every first-time homebuyer should consider, especially if they get a mortgage:

• shopping spree
• Have a short list of mortgage lenders that fit your needs

If you want to buy with a down payment, be sure to check if you qualify for assistance programs in your area.

Last year, Bank of America launched an assistance program to provide eligible individuals and families with affordable home-buying credit that did not require mortgage insurance or a minimum credit rating.

The US Sun revealed which cities to expect a drop in home prices.