It’s not your imagination: everything is so expensive now – houses included. Not only do potential homebuyers have to deal with rising mortgage interest rates and inflation, but there are also fewer options available at the moment. This means that some people who were in a position to buy a home a few years ago now find themselves out of the market.
But while it all goes up, there are some Cities where the average cost of buying a home is decreasing. Here’s what you need to know.
Why are housing prices dropping in these cities?
For some context, here’s George Ratio, Director of Economic Research at Realtor.com:
“Many of the central areas that have seen have experienced a moderate drop in list prices [influx] Of the tiny homes that are being put on the market, which carry low price tags. At the same time, many cities suffer from unemployment rates that are higher than the national level although they are still historically low. [This indicates] Buyers may face greater challenges in affordability from higher mortgage rates.”
Where do home prices fall?
A note before we get into the list: These are the cities where homes cost the most — not the cities with the least expensive homes. So, if you couldn’t buy a home in Los Angeles before, that probably hasn’t changed. But it is still useful to know which urban areas are bucking the national trend of rising prices.
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Here are the 10 cities where with the steepest drops in housing prices, according to search from Realtor.com:
1. Toledo, Ohio
- Average list price: $115,000
- Average List Price Change: -18.7%
2. Rochester, New York
- Average list price: $149,900
- Average List Price Change: -17.0%
3. Detroit, Michigan
- Average list price: $75,000
- Average List Price Change: -15.4%
4. Pittsburgh, Pennsylvania
- Average list price: 230 thousand dollars
- Average List Price Change: -13.7%
5. Springfield, Massachusetts
- Average list price: $239,900
- Average List Price Change: -5.8%
6. Tulsa, okay
- Average list price: 220 thousand dollars
- Average List Price Change: -5.0%
7. Los Angeles
- Average list price: $985,000
- Average List Price Change: -5.0%
8. Memphis, Tennessee
- Average list price: 173,500 dollars
- Average List Price Change: -4.6%
9. Chicago
- Average list price: 399,000 dollars
- Average List Price Change: -3.7%
10. Richmond, Virginia
- Average list price: $310,000
- Average List Price Change: -3.4%
