Looking at virtually any index of U.S. home prices reveals that the cost of buying a home continues to rise a rapid clip. Nationally home prices rose more than 6% last year and are expected to rise by another 5% this year.
That does not mean that all housing markets are seeing sharp price hikes. There are some where housing prices are falling. The reasons for the price drops vary and include overbuilding back in the boom days, massive layoffs or company shutdowns, and even natural disasters.
Researchers at Realtor.com reviewed data on the 350 largest U.S. metro areas and identified 27 (admittedly not many) where home prices are falling. They compared two 12-month periods from May to April 2016 through 2017 with May to April 2018 to come up with their results.
Here are the 10 U.S. cities where home prices are declining, including the median home listing price and the percentage price drop between the two periods.
- Santa Maria-Santa Barbara, California
Median home listing price: $951,600
Price drop: 17.7% - Pottsville, Pennsylvania
Median home listing price: $72,300
Price drop: 8.1% - Napa, California
Median home listing price: $823,900
Price drop: 6.7% - Austin, Texas
Median home listing price: $373,000
Price drop: 4.3% - Beckley, West Virginia
Median home listing price: $134,000
Price drop: 4.2% - College Station, Texas
Median home listing price: $301,700
Price drop: 3.6% - Corpus Christi, Texas
Median home listing price: $237,600
Price drop: 3.1% - Anchorage, Alaska
Median home listing price: $299,900
Price drop: 3% - Houma, Louisiana
Median home listing price: $176,900
Price drop: 2.7% - Bismarck, North Dakota
Median home listing price: $263,200
Price drop: 1.8%
Visit the Realtor.com website for more details and comments on these cities.
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