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A growing number of aspiring home buyers are being priced out of homeownership due to higher mortgage rates, closing costs, and home prices. But some markets may be less affected by recent high costs.
Realtor.com® researchers identified a few markets where home prices are dropping. In these markets, the prices may have risen beyond what residents could afford and are readjusting. Or the data may reflect lower prices in these markets because of fewer larger homes for sale.
“Many of the metro areas seeing median list price declines have seen an [influx] of smaller homes come to the market, which carry lower price tags,” says George Ratiu, manager of economic research at realtor.com®. “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.”
Realtor.com®’s research team identified the market where home prices are falling the most by looking at year-over-year median list price data for the 100 largest metro areas in March. They limited their list to one metro per state to ensure geographic diversity.
1. Toledo, Ohio
- Median listing price: $115,000
- Median listing price change: -18.7%
2. Rochester, N.Y.
- Median listing price: $149,900
- Median listing price change: -17.0%
3. Detroit
- Median listing price: $75,000
- Median listing price change: -15.4%
4. Pittsburgh
- Median listing price: $230,000
- Median listing price change: -13.7%
5. Springfield, Mass.
- Median listing price: $239,900
- Median listing price change: -5.8%
6. Tulsa, Okla.
- 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%