10 U.S. Housing Markets Seeing the Biggest Price Drops Right Now

CryptonesiaPicks features products we believe will be beneficial for you; our recommendations are separate from the Cryptonesia newsroom. We may receive a commission from these links in the article. Learn more

Financial markets are volatile, median home prices are elevated, and mortgage rates have seen some wild ups and downs recently. While that outlook probably isn’t what aspiring buyers want to hear, there may be a glimmer of hope, says Zillow senior economist Kara Ng. “The unpredictable state of the overall economy may be giving first-time buyers pause, but the housing market is offering buyers a lot of advantages right now,” says Ng. (Discover some of the top mortgage rates you could be eligible for right here, from our partner Bankrate.)

Despite the median sale price for new houses in the U.S. staying high at $503,800 during the last quarter, this figure has dropped by 1.3% from Q4 as per Federal Reserve statistics. Additionally, data from the U.S. Department of Housing and Urban Development along with the U.S. Census Bureau indicates that the count of recently constructed single-family residences sold across the country increased by 7.4%, totaling 724,000 units. This uptick suggests that certain areas are witnessing shifts within their housing market dynamics, increasingly tilting towards buyer advantage.

Given the increased number of properties available and sellers who are now more willing to negotiate, homebuyers possess stronger bargaining power compared to recent years," states Tony Julianelle, CEO of Atlas Real Estate. Additionally, Ng observes that "the competition amongst buyers is unusually mild for this period, as indicated by minimal month-to-month price increases." He further explains that "homebuyers currently enjoy a wider selection with almost 20 percent more choices than last year, and sellers are reducing their asking prices dramatically to attract potential bids.

10 real estate markets seeing the biggest drops in prices

Here are the 10 housing markets with the highest percentage of total listings showing price cuts over the past year through March, according to Zillow.

1. Phoenix, Ariz.

The percentage of listings that have reduced their prices total up to 37%.

New listings: 7,959

Inventory increase (year-over-year): 36.1%

Days to pending: 29

2. Tampa, Fla.

The percentage of listings that have reduced their prices total up to 34%.

New listings: 6,284

Inventory increase (year-over-year): 21.4%

Days to pending: 30

3. Jacksonville, Fla.

The percentage of listings that have reduced their prices total up to 30.7%.

New listings: 2,945

Inventory increase (year-over-year): 26.7%

Days to pending: 49

4. Raleigh, N.C.

The percentage of listings that have reduced their prices is 30.4%.

New listings: 1,852

Inventory increase (year-over-year): 42%

Days to pending: 10

5. Denver, Co.

The total percentage of listings with reduced prices is 30% (tied).

New listings: 5,229

Inventory increase (year-over-year): 45.6%

Days to pending: 11

5. Nashville, Tenn.

The total percentage of listings with reduced prices is 30% (tied).

New listings: 2,927

Inventory increase (year-over-year): 26.4%

Days to pending: 19

7. Orlando, Fla.

The total percentage of listings that have had their prices reduced is 29.8% (tied).

New listings: 4,128

Inventory increase (year-over-year): 34.6%

Days to pending: 33

7. Dallas, Tx.

The total percentage of listings that have had their prices reduced is 29.8% (tied).

New listings: 10,199

Inventory increase (year-over-year): 27.4%

Days to pending: 24

9. San Antonio, Tx.

The percentage of listings that have reduced their prices total up to 28.3%.

New listings: 3,185

Inventory increase (year-over-year): 27.4%

Days to pending: 37

10. Salt Lake City, Utah

The percentage of listings that have reduced their prices is 28.3%.

New listings: 1,420

Inventory increase (year-over-year): 28.9%

Days to pending: 15

Time to buy?

Acquiring a house is a significant choice encompassing numerous aspects, many of which are deeply personal," states Ng. "In the end, if you're financially prepared to purchase a home, willing to embrace that way of life, and can locate the ideal match for both your present and upcoming housing requirements, I would advise 'taking the plunge.'

Julianelle suggests that for individuals who aren’t prepared to take the plunge, there are several other choices at hand. "Should you doubt your employment security, intend to relocate soon, or find yourself straining financially due to present property costs and interest rates, it could be prudent to hold off or explore leasing instead," he explains. He adds that certain areas, such as Denver, now offer better tenant opportunities because of higher vacancy rates among rentals.

Share this post