Housing News

Looking for a Bargain? 10 Cities Where Home Prices Have Fallen the Most

For the last few years, it’s been tough to find good deals in the real estate market. Home prices have steadily risen, frustrating homebuyers.

However, it appears that relief is on the way as prices are coming down in many parts of the country. The declines are due to more homes and new construction going up for sale at a time when many buyers are financially stretched to their limits and worried about the security of their jobs.

Higher insurance costs in places like Florida, Texas, and other areas are also weighing on the budgets of many of those who hope to purchase a home.

“The price cuts have created a new sense of opportunity for some buyers,” said Liliana Valencia, a real estate broker for MCL Realty Group LLC in Miami. “Those who have been priced out of the market in recent years are now re-entering, seeing this as a chance to negotiate better deals”

In addition to lower prices, falling mortgage rates are also improving affordability for buyers. Rates fell nearly two percentage points from an average 7.79% late last October to an average of 6.12% for 30-year, fixed-rate loans in the week ending Oct. 3, according to Freddie Mac data.

Fifty-seven of the 100 largest metropolitan areas experienced year-over-year price declines in August, according to Realtor.com data. Prices were flat in additional six metros and up in 37 metros.

Below are the top 10 metros where home prices dropped by the most.

1. Bridgeport, CT

Year-over-year price drop in August*: -15.8%

Median home list price: $800,000

2. Honolulu, HI

Year-over-year price drop in August: -11.9%

Median home list price: $725,000

3. Miami, FL

Year-over-year price drop in August: -11.7%

Median home list price: $530,000

4. North Port, FL

Year-over-year price drop in August: -10.2%

Median home list price: $485,000

5. Little Rock, AR

Year-over-year price drop in August: -9.5%

Median home list price: $290,000

6. San Diego, CA

Year-over-year price drop in August: -9.1%

Median home list price: $999,000

7. Kansas City, MO

Year-over-year price drop in August: -8.5%

Median home list price: $398,050

8. Cape Coral, FL

Year-over-year price drop in August: -8.1%

Median home list price: $440,000

9. San Francisco, CA

Year-over-year price drop in August: -7.7%

Median home list price: $969,000

10. Austin, TX

Year-over-year price drop in August: -7.6%

Median home list price: $525,000

* New American Funding compared the month of August 2024 to August 2023 using home list price data from Realtor.com.