With soaring housing prices and skyrocketing mortgage interest rates, it seems that the dream of homeownership is becoming increasingly challenging for many Americans. However, despite these challenges, the latest data reveals that housing prices in some major metropolitan areas are actually declining, providing an opportunity for prospective buyers.
According to a recent report released by the National Association of Realtors (NAR) in the United States, in the first quarter of this year, 93% of the 221 real estate markets nationwide saw an increase in existing single-family home prices, while the remaining 7%, or 15 metropolitan areas, experienced a downward trend in housing prices, presenting an opportunity for potential buyers.
NAR’s data shows that the largest drop in housing prices is in the northern New York city of Elmira, which saw a 15.1% decrease compared to the same period last year, leading all other metropolitan areas. The city offers very affordable housing prices, and according to NAR, with a 20% down payment, buyers only need an annual income of $34,400 to easily purchase a home in the area.
In the southern region, three metropolitan areas including the San Antonio-New Braunfels metropolitan area in Texas, the Cape Coral-Fort Myers metropolitan area in Florida, and the Panama City metropolitan area in Florida also saw significant decreases in housing prices, around 4%.
The price declines in other metropolitan areas were less pronounced, ranging below 2%, with the lowest being just 0.1%. However, considering that the median price for single-family homes in the United States increased by 5% year-over-year to a high of $389,400, even slight price reductions are worth considering for those interested in buying a home.
The following are the year-over-year decreases in housing prices for these 15 metropolitan areas:
1. Elmira, New York: 15.1%
2. San Antonio-New Braunfels, Texas: 4.6%
3. Cape Coral-Fort Myers, Florida: 4.4%
4. Panama City, Florida: 3.8%
5. Boulder, Colorado: 1.7%
6. Salem, Oregon: 1.7%
7. South Bend-Mishawaka, Indiana: 1.6%
8. Logan, Utah-Idaho: 1.3%
9. Baton Rouge, Louisiana: 1.1%
10. Peoria, Illinois: 1.1%
11. Shreveport-Bossier City, Louisiana: 0.9%
12. Myrtle Beach-Conway-North Myrtle Beach, South Carolina and North Carolina: 0.6%
13. Austin-Round Rock, Texas: 0.3%
14. Crestview-Fort Walton Beach-Destin, Florida: 0.2%
15. Little Rock-North Little Rock-Conway, Arkansas: 0.1%
(This article referenced a report from the MarketWatch website)