Housing News

Looking for a Bargain? Home Prices Fell the Most in These 15 Popular Housing Markets

Many people would love to buy a home but worry they can’t afford to do so.

However, it is getting a little easier to do so in many parts of the country.

In July, the list price of the typical home dropped in 57 of the largest housing markets of the country compared to the previous year, according to Realtor.com data. Prices were flat in an additional five markets.

Additionally, mortgage interest rates have come down by about a fifth of a percentage point and could fall further later this year.

Median list prices fell the most in the Honolulu metropolitan area, dropping 7.7% in July compared to the same month a year earlier, according to Realtor.com data.

They were down 7.6% in the Durham, N.C. metro and decreased 7.5% in Cape Coral, Fla.

“The market is shifting from a big seller’s market…toward a buyer’s market,” said Durham-based real estate broker Bert Woodall of West & Woodhall.

This spring, he saw fewer buyers attending open houses and putting in offers after the news of the tariffs and federal government layoffs gave people pause.

Those who remain in the Durham market are finding more homes to choose from at lower price points.

“It will allow buyers to have more time in making a decision, more choices, and probably a little better prices,” said Woodall. “Sellers are having to adjust pricing. They’re going to have to have the house in better condition when they list it.”

Those who remember the Great Recession, when home prices plummeted, shouldn’t panic. Experts don’t expect prices to fall by double-digits throughout the country.

Homeowners are sitting on record amounts of equity, which should provide a cushion even if prices do come down a little. Plus, the risky mortgages that many homeowners defaulted on during that time have been mostly eliminated from the market.

And there are still many people who hope to become homeowners. That should put a ceiling on how far home prices can fall.

“If we have a [mortgage] rate drop, we’ll see more buyers in the market and it will be more competitive,” said Woodall.

The housing markets where prices are falling the most is based on July home list prices using Realtor.com data. Only the 100 largest metropolitan areas were included.

Where are home prices falling the most?

Below are the 15 housing markets where home prices are falling the most.

1. Honolulu
   Median home list price in July: $675,000
   Price decrease year-over-year: -7.7%

2. Durham, N.C.
   Median home list price: $485,000
   Price decrease year-over-year: -7.6%

3. Cape Coral, Fla.
   Median home list price: $415,700
   Price decrease year-over-year: -7.5%

4. Oxnard, Calif.
   Median home list price: $1,012,500
   Price decrease year-over-year: -7.4%

5. Des Moines, Iowa
   Median home list price: $350,000
   Price decrease year-over-year: -5.4%

6. Austin, Texas
   Median home list price: $510,950
   Price decrease year-over-year: -4.9%

7. Miami
   Median home list price: $509,950
   Price decrease year-over-year: -4.7%

8. Chicago
   Median home list price: $377,000
   Price decrease year-over-year: -4.4%

9. Los Angeles
   Median home list price: $1,148,500
   Price decrease year-over-year: -4.2%

10. Denver
    Median home list price: $600,000
    Price decrease year-over-year: -4%

11. Baton Rouge, La.
    Median home list price: $300,000
    Price decrease year-over-year: -4%

12. Palm Bay, Fla.
    Median home list price: $381,100
    Price decrease year-over-year: -3.9%

13. Phoenix
    Median home list price: $505,000
    Price decrease year-over-year: -3.8%

14. Sacramento, Calif.
    Median home list price: $625,000
    Price decrease year-over-year: -3.8%

15. Wichita, Kan.
    Median home list price: $299,450
    Price decrease year-over-year: -3.6%