It’s not your imagination: Everything is expensive right now—including homes. Not only do potential homebuyers have to deal with rising mortgage interest rates and inflation, but there are also fewer available options at the moment. This means that some people who might have been in a position to buy a home a few years ago are now finding themselves priced out of the market.
But at a time when everything is going up, there are some cities where the median cost of buying a home is decreasing. Here’s what to know.
Why are home prices going down in these cities?
For some context, here’s George Ratiu, manager of economic research for Realtor.com:
“Many of the metro areas seeing median list price declines have seen an [influx] of smaller homes come to market, which carry lower price tags. At the same time, several of the cities have unemployment rates, which, while still historically low, are above the national level. [This indicates] that buyers may face steeper affordability challenges from rising mortgage rates.”
Where are home prices going down?
A note before we get into the list: These are the cities where the cost of homes is falling the most—not the cities with the least expensive homes. So, if you couldn’t afford a home in Los Angeles before, that probably hasn’t changed. But it’s still useful to know which metropolitan areas are bucking the national trend of prices soaring.
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Here are the 10 cities where with the steepest drops in housing prices, according to research from Realtor.com:
1. Toledo, OH
- Median listing price: $115,000
- Median listing price change: -18.7%
2. Rochester, NY
- Median listing price: $149,900
- Median listing price change: -17.0%
3. Detroit, MI
- Median listing price: $75,000
- Median listing price change: -15.4%
4. Pittsburgh, PA
- Median listing price: $230,000
- Median listing price change: -13.7%
5. Springfield, MA
- Median listing price: $239,900
- Median listing price change: -5.8%
6. Tulsa, OK
- Median listing price: $220,000
- Median listing price change: -5.0%
7. Los Angeles
- Median listing price: $985,000
- Median listing price change: -5.0%
8. Memphis, TN
- Median listing price: $173,500
- Median listing price change: -4.6%
9. Chicago
- Median listing price: $399,000
- Median listing price change: -3.7%
10. Richmond, VA
- Median listing price: $310,000
- Median listing price change: -3.4%