10 Big Cities Where Home Prices Have Fallen the Most Over the Past Year
Is hope for homeownership on the horizon at last?
Nationwide, home prices rose just 0.44% over the last year, according to the latest Zillow data.
They didn't rise evenly however — or at all, in many markets.
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Technically, home prices fell furthest in Greenville, Mississippi, over the last 12 months, divebombing by 24.5%. But as a small town ranking 648th in the nation in size, that doesn't tell us much about broader trends.
Looking just at the top 100 metro areas in the country, the following 10 cities saw home prices fall the most:
Cape Coral, Florida: -8.81%
North Port, Florida: -7.19%
Austin, Texas: -5.94%
Tampa, Florida: -4.28%
Stockton, California: -4.03%
Miami: -3.94%
Lakeland, Florida: -3.82%
Dallas: -3.71%
Orlando, Florida: -3.69%
Deltona, Florida: -3.63%
While it didn't make the top 10, an honorable mention goes to Denver, which would have ranked 11th. Home prices in the Mile High City fell 3.13% over the last 12 months.
What's Behind the Decline?
During and after the pandemic, real estate prices boomed, especially in Sun Belt cities. Dr. Selma Hepp, chief economist at Cotality, points out that the trends driving that boom have since evaporated.
"Rising prices and interest rates have gutted affordability in these markets and return-to-office mandates have sent many workers back to their original headquarters," she said.
Americans who aren't tied to a specific city for work have started looking for more affordable places to set down roots. That shifts the supply/demand imbalance that caused home prices to skyrocket in many markets just a few short years ago.
The lock-in effect limiting supply has also started easing, as many homeowners feel they can't wait around for lower mortgage rates.
"Active listings in many of these markets are up 20% or more from a year ago, putting buyers back into the driver seat," said Ryan Fitzgerald of Raleigh Realty .
Finally, it's hard not to notice that a whopping seven of those top 10 declining cities are in Florida. Thomas O'Shaughnessy, vice president at Clever Real Estate, points to a perfect storm slamming Florida home values.
"A combination of soaring homeowners' insurance, increased HOA fees after new condo safety regulations, low in-migration and oversupply of inventory have crashed prices in cities like Cape Coral and North Port," he said.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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