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wning a home is becoming increasingly out of reach for many, with house prices skyrocketing after the pandemic. However, recent data suggests that the housing market may be shifting in favor of buyers. In fact, several cities across the US are experiencing a dip in housing prices, particularly in the Sun Belt region.
According to Realtor.com's analysis, 10 cities are seeing the most significant price drops, offering potential bargains for buyers. The trend is attributed to an increase in available homes, higher mortgage rates making borrowing more expensive, and a cooling off of buyer demand. This has led sellers to lower their asking prices to attract buyers.
For those waiting on the sidelines, especially younger folks trying to buy their first home, this could be the break they've been hoping for. However, it's a different story for sellers and developers, who may face tougher times selling homes at expected prices.
The Sun Belt is where most of the action is happening, with nine out of ten cities on the list located in this region. Florida has more than half of these cities, including North Port, Tampa, Cape Coral, and Jacksonville, where nearly a third of listed homes have seen price cuts.
Denver, Colorado, is the only city outside of the Sun Belt to make it into the top ten, with 27% of its listings seeing price reductions. The increase in inventory ranges from almost 28% in Palm Bay, Florida, to a whopping 65% in Denver.
Here are the top 10 cities where house prices are declining the most:
1. Phoenix, Arizona: 31% of home listings have seen price reductions, with a median list price of $525,000 and an average market time of 52 days.
2. North Port, Florida: 30% of listings have had their prices reduced, with a median asking price of $490,500 and an average market time of 70 days.
3. Tampa, Florida: 29% of listed homes have seen price cuts, with a median list price of $410,000 and an average market time of 58 days.
4. Cape Coral, Florida: 28% of homes have had their prices lowered, with a median price of approximately $435,000 and an average market time of 81 days.
5. Jacksonville, Florida: 28% of homes have seen price reductions, with a median list price of about $399,995 and an average market time of 57 days.
6. Denver, Colorado: 27% of listings have price reductions, amidst a sharp 65% surge in inventory, with a median home price of around $599,450 and an average market time of 36 days.
7. Palm Bay, Florida: 27% of listings have price cuts, with a median list price of around $389,825 and an average market time of 61 days.
8. Deltona, Florida: 27% of homes have been marked down in price, with a median asking price of around $394,450 and an average market time of 70 days.
9. Austin, Texas: 26% of listings have been reduced in price, with a median list price of around $525,000 and an average market time of 44 days.
10. Charleston, South Carolina: 26% of listings have price drops, with a median price of around $525,000 and an average market time of 41 days.
Experts believe that this shift in the housing market is significant, with buyers now in a strong negotiating position due to increased inventory and longer selling times. However, sellers may need to adjust their expectations and be prepared for negotiations.
