Real estate
Who doesn’t love a good deal? Home buyers certainly do.
With home prices and mortgage rates are uncomfortably highmany aspiring buyers are desperate for ways to save money on what could be the biggest purchase they’ll ever make.
Nationally, home prices rose 0.3% year over year in February, to a median of $415,500, according to Realtor.com® data. But there are places where property prices are falling.
Yes, you read correctly.
Homebuyers can save a pretty penny in these real estate markets, which stretch from the pricey West Coast to the more affordable South and Midwest regions of the country, according to a report. recent report from Realtor.com.
“A lot of the (housing) inventory coming onto the market is at a more affordable price point,” says Danielle Hale, chief economist at Realtor.com. “When more affordable listings hit the marketThis will also lower the overall price.
THE number of houses for sale increased in all but two of these markets. When buyers have more options to choose from, it also helps control prices.
To reach its conclusions, the Realtor.com economics team compared February 2024 median list prices to February 2023 median list prices in the 50 largest metro areas.
Why real estate prices have fallen so much in Miami
The hot spot of the COVID-19 pandemic Miami experienced the largest price drops. The median listed home price fell 8.2% year-over-year to a median price of $550,000 in February. Meanwhile, the number of homes for sale in the metro jumped 37.4% in February compared to the same month a year earlier.
The price drops represent a sharp 180-degree turn for the Magic City. Prices have risen along with temperatures in recent years as more people from other parts of the country have moved to the metro.
“There has been a craze for COVID in recent years. We’ve had so many people from New York and California,” says Sam DeBianchi, Realtor® with DeBianchi Real Estate in Fort Lauderdale, Florida. It also does business in nearby Miami.
More than 117,000 New Yorkers moved to Florida in 2021 and 2022, according to figures from the Florida Department of Highway Safety and Motor Vehicles. In 2023, 53,581 people moved to the state.
Metro prices have soared, reaching a peak of $625,000 in June, representing a staggering 56% increase in just two years. But what goes up must eventually come down.
“Over the past few years, sellers have really inflated their asking prices because they were getting them,” DeBianchi says. “This year is really when reality hits, and you see these price drops. I don’t think there’s anything to panic about. Most sellers are still making money. They just don’t make as much money.
The rising cost of insurance is also driving down housing prices in coastal Miami.
“Florida’s condo market is faltering as the increasing intensity of natural disasters drives up home insurance costs and HOA fees skyrocket in the wake of Surfside condo collapse in 2021“, says Jenny Lenz, luxury real estate agent. She is the Managing Director of Dolly Lenz Real Estate. “New condo listings are skyrocketing as sellers try to offload their properties. »
Where Home Prices Are Falling Across America
Several Midwestern markets, traditionally more affordable, have also seen prices fall. Hale attributed the price drops to Oklahoma City, CincinnatiAnd Kansas City, MO, due to the sale of smaller, cheaper homes. This has helped drive down median posted prices in these metros.
Prices are also falling in some of the country’s most expensive metros on the West Coast. Median house prices fell 2.3% in San Jose, Californiain the heart of Silicon Valley, and fell by 1.3% in San Francisco.
“These areas are very closely tied to the tech industry, and tech has been on a roller coaster ride over the last couple of years,” says Hale.
Prices have fallen sharply in these metros during the pandemic as workers newly allowed to work remotely move to less expensive parts of the country. Then, as those fields rebounded, the tech industry was rocked by layoffs. Now, many technology companies in the region are focusing on artificial intelligence.
“You were excited about what AI could mean for the Bay Area, and some vendors might try to take advantage of that,” Hale says. “New listings are also on the rise in the (San Francisco) Bay Area.
“We’re at a time where your experience in the real estate market depends on where you are,” says Hale. “It’s more local now than at other times.”
Here are the cities where property prices are falling the most:
Median house price in February: $550,000
Median list price over one year: -8.2%
Median home price in February: $323,000
Median list price over one year: -7.4%
Median home price in February: $337,000
Median list price over one year: -6.4%
Median home price in February: $421,000
Median list price over one year: -4.9%
Median home price in February: $610,000
Median list price over one year: -3.6%
Median home price in February: $1.367 million
Median list price over one year: -2.3%
Median home price in February: $440,000
Median list price over one year: -2.2%
Median home price in February: $335,000
Median list price over one year: -1.5%
Median home price in February: $989,000
Median list price over one year: -1.3%
This story was originally published on Realtor.com, a real estate and rental site. In addition to homes for sale, you can find rentals like Apartments in Scottsdale, Apartments in Austin, Apartments in Tampaand more.
Median house price in February: $600,000
Median list price over one year: -1.2%
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