Prospective homebuyers waiting for prices to drop have something to be excited about. The listings site Realtor.com just put out a new ranking of where home prices are falling the most compared with a year ago.
Cities such as Ogden, Utah, and Boise, Idaho, which were heralded as boomtowns as remote workers from across the country flocked to locations with more outdoor space and less expensive homes, now appear to be reversing the upward trend in housing prices. Other hotspots, such as Austin, Texas, and Myrtle Beach, South Carolina, saw drops of 2% or more.
"These are some areas that saw really rapid price growth in the past several years — there was just enormous demand," Evan Wyloge, a Realtor.com data journalist, told Insider. "It stands to reason that in these places that were the hottest and where prices were rising the fastest, when mortgage rates cranked up, that put the brakes on transactions and overall buyer capacity and interest."
With fewer transactions happening, sellers are more inclined to drop their prices. This could also help out younger buyers seeking to purchase a home. For example, data from Zillow indicated that 31% of homebuyers in Ogden-Clearfield from April to July were Gen Zers.
To calculate its list, Realtor.com looked at the change in the median list price per square foot for the 50 largest metro areas, comparing data from August 2023 and August 2022. It also included only one metro area per state to ensure the list had geographic diversity.
Dropping by a single-digit percentage may not seem like a lot, but in these housing markets that have inflated over the years, that's thousands of dollars in savings, Wyloge says. Here are the 10 cities where home prices fell the most between August 2022 and August 2023, according to Realtor.com.
