The housing market has been on a rollercoaster ride for over three years. Home prices spiked just after the start of the COVID-19 pandemic. People could work from home. Many also wanted to leave expensive cities, particularly on the coasts. Prices had become too high in New York, San Francisco and Los Angeles for middle-class Americans. Cities inland and in Florida offered better deals. The surge in buying also was helped by mortgage rates that were below 3%. (These are America’s hottest housing markets.)
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Over the past year, the home market has changed radically. Mortgage rates rose above 6% as the Federal Reserve increased rates to tame inflation. Home prices in some markets started to drop back to pre-pandemic levels. In some cities, homes prices that have fallen enough so buyers can find deals.
A new report from Realtor.com includes the best American cities for home price deals. While some of these metropolitan areas still have median home prices that are relatively high, they are falling and likely will fall further.
The market where home prices have dropped the most is Boise, to which many people who lived on the West Coast moved. Realtor.com used the price per square foot yardstick to make this determination. Boise home prices have dropped 7.8% from May last year to May 2023. Home prices in Boise are still relatively high at $609,875. So they are a deal for relatively affluent people.
These are the 10 cities where home prices dropped the most between May 2022 and May 2023:
| City | Price | Change |
|---|---|---|
| Boise | $609,875 | −7.8% |
| Austin | $583,751 | −7.7% |
| Myrtle Beach | $366,075 | −7.3% |
| Phoenix | $529,450 | −5.6% |
| Sarasota | $549,900 | −4.7% |
| Salt Lake City | $635,000 | −4.0% |
| Pittsburgh | $238,250 | −3.9% |
| Winston-Salem | $345,899 | −3.6% |
| Sacramento | $662,875 | −3.4% |
| Chicago | $376,000 | −1.1% |
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