Price drops do exist
Home prices are climbing – but not everywhere. In fact, according to a new report, there are actually a handful of cities where prices have dropped in the last year. Could they hold the key for homebuyers seeking affordability in today’s hot market?
Where home prices are dipping the most
According to a new report from Realtor.com, there are 27 metros where home prices have declined in the last year.
Topping the list for biggest price drops was Santa Barbara, California, where home prices have decreased 17.7 percent. The decrease is likely due to last year’s wildfires and mudslides, which have caused homebuyer demand to wane in the area.
Home buying power still high, despite rising prices and rates
According to Daren Blomquist, a senior vice president at ATTOM Data Solutions, “people who might have considered buying there are going to think twice.”
Pottsville, Pennsylvania – situated just north of Philadelphia – took No. 2 for biggest price dip, with home prices declining 8.1 percent. The median price for the area clocks in at just $72,300.
In Napa, California, prices have decreased 6.7 percent, making it the No. 3 biggest dip in the nation.
Other affordable cities
A total of 24 other U.S. metros saw home prices decline year over year, according to the analysis.
Prices in Austin, Texas, have dipped 4.3 percent due to a surplus of housing, while those in nearby Corpus Christi dropped more than 3 percent, likely due to damage caused by Hurricane Harvey. The Lone Star State’s College Station saw home prices dip 3.6 percent.
Other cities to make the list were Anchorage; Beckley, West Virginia; Houma, Louisiana; and Bismarck, North Dakota.
Where home prices haven’t peaked; the nation’s safest bets to buy - for now
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