These 15 cities are seeing home prices decline even as affordable properties get harder to find

2024-05-09T15:11:04Z

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US single-family home prices climbed 5% in the first quarter as mortgage rates declined.
Properties became more expensive in an alarming 93% of metropolitan areas.
Here are 15 cities where houses got more affordable in early 2024.

Anyone looking for an affordable house now doesn’t just need a realtor — they need a miracle.

Existing single-family home prices rose 5% year-over-year to a median of $389,400 in early 2024, according to the National Association of Realtors’ first-quarter report released on May 8. That’s slightly lower than last quarter’s mark of $391,700, which was down from $406,900 in Q3.

Price growth was partially offset by lower mortgage costs, as 30-year fixed rates hung between 6.6% and 6.94% in the first quarter. That’s a small win for buyers, considering that rates peaked at 7.8% late last year and were above 7% until mid-December.

However, the typical monthly mortgage payment with a 20% down payment was $2,037 — an improvement from Q4’s $2,161 mark, but still 9.3% higher than a year ago.

Families are shelling 24.2% of their income on mortgage payments, which compares to 26.1% last quarter and 23.3% in 2023. For first-time buyers, that figure jumps to 36.5%. While that’s down from 39.3% in Q4, it’s still prohibitively expensive for many would-be homeowners.

Widespread price gains bring buyers pain

Persistently high home prices stem from a long-standing housing shortage. Houses have been underbuilt across the US since the housing bubble burst in 2008, which has led to bidding wars between buyers while driving up owners’ home equity.

Property values benefitted from broad-based growth in the late 2010s, and the trend continued at an even higher rate during the pandemic. From mid-2020 through the third quarter of 2022, between 97% and 100% of the markets tracked by the NAR were up on a year-over-year basis.

At the first sight of lower mortgage rates, that widespread price appreciation has returned — much to the chagrin of buyers who thought they were going to catch a break.

Homes got more costly in a staggering 93% of US cities in early 2024, the NAR found. In the previous three quarters, the percentage of markets with higher home values than the prior year was 86%, 82%, and 58%, which shows that homes on sale are an increasingly rare sight.

“Astonishingly, greater than 90% of the country’s metro areas experienced home price growth despite facing the highest mortgage rates in two decades,” Lawrence Yun, the chief economist at the NAR, said in a press-release statement for the report. “In the current market, rising prices are the direct result of insufficient housing supply not meeting the full demand.”

Prices surged at least 10% in over 60 markets, or nearly a third of the 221 markets surveyed by the NAR. Conversely, prices fell outright only in 15 cities, versus 32 in the fourth quarter of 2023.

15 cities where home prices are down

Below are those 15 US real-estate markets where single-family home prices fell from last year. Along with each city is its home-price change, the median home price in the first quarter of 2024 as well as in the first and fourth quarters of 2023, and the qualifying income needed to buy a house in that market with 20% down payment, according to the NAR.

1. Elmira, New York

Year-over-year price change: -15.1%

Median home price in Q1 2024: $135,800

Median home price in Q4 2023: $142,700

Median home price in Q1 2023: $160,000

Qualifying income needed with 20% down payment: $34,424

Source: National Association of Realtors

2. San Antonio, Texas

San Antonio skyline — San Antonio.

Sean Pavone/Getty Images

Year-over-year price change: -4.6%

Median home price in Q1 2024: $305,800

Median home price in Q4 2023: $315,700

Median home price in Q1 2023: $320,500

Qualifying income needed with 20% down payment: $77,516

Source: National Association of Realtors

3. Cape Coral, Florida

Waterfront homes in Cape Coral, Florida, which boasts 400 miles of canals

TriggerPhoto/Getty Images

Year-over-year price change: -4.4%

Median home price in Q1 2024: $415,000

Median home price in Q4 2023: $400,000

Median home price in Q1 2023: $434,000

Qualifying income needed with 20% down payment: $105,197

Source: National Association of Realtors

4. Panama City, Florida

Panama City Beach, Florida — Highbarger moved to the Florida panhandle to be closer to family.

Valeri Clincy/EyeEm/Getty Images

Highbarger moved to the Florida panhandle to be closer to family.

Valeri Clincy/EyeEm/Getty Images

Year-over-year price change: -3.8%

Median home price in Q1 2024: $351,000

Median home price in Q4 2023: $361,900

Median home price in Q1 2023: $365,000

Qualifying income needed with 20% down payment: $88,974

Source: National Association of Realtors

5. Boulder, Colorado

Year-over-year price change: -1.7%

Median home price in Q1 2024: $822,400

Median home price in Q4 2023: $849,400

Median home price in Q1 2023: $836,900

Qualifying income needed with 20% down payment: $208,468

Source: National Association of Realtors

6. Salem, Oregon

Year-over-year price change: -1.7%

Median home price in Q1 2024: $446,000

Median home price in Q4 2023: $449,700

Median home price in Q1 2023: $453,700

Qualifying income needed with 20% down payment: $113,055

Source: National Association of Realtors

7. South Bend, Indiana

Year-over-year price change: -1.6%

Median home price in Q1 2024: $180,000

Median home price in Q4 2023: $189,500

Median home price in Q1 2023: $183,000

Qualifying income needed with 20% down payment: $45,628

Source: National Association of Realtors

8. Logan, Utah

Year-over-year price change: -1.3%

Median home price in Q1 2024: $436,100

Median home price in Q4 2023: $424,300

Median home price in Q1 2023: $441,900

Qualifying income needed with 20% down payment: $110,546

Source: National Association of Realtors

9. Baton Rouge, Louisiana

Year-over-year price change: -1.1%

Median home price in Q1 2024: $260,000

Median home price in Q4 2023: $262,900

Median home price in Q1 2023: $262,900

Qualifying income needed with 20% down payment: $65,907

Source: National Association of Realtors

10. Peoria, Illinois

A lake view of Peoria, Illinois. — Peoria, Illinois.

ghornephoto/Getty Images

Peoria, Illinois.

ghornephoto/Getty Images

Year-over-year price change: -1.1%

Median home price in Q1 2024: $127,200

Median home price in Q4 2023: $144,200

Median home price in Q1 2023: $128,600

Qualifying income needed with 20% down payment: $32,244

Source: National Association of Realtors

11. Shreveport, Louisiana

Shreveport, Louisiana, skyline over the Red River at dusk. — Shreveport, Louisiana.

Sean Pavone/Shutterstock

Shreveport, Louisiana.

Sean Pavone/Shutterstock

Year-over-year price change: -0.9%

Median home price in Q1 2024: $213,600

Median home price in Q4 2023: $211,200

Median home price in Q1 2023: $215,600

Qualifying income needed with 20% down payment: $54,145

Source: National Association of Realtors

12. Myrtle Beach, South Carolina

Year-over-year price change: -0.6%

Median home price in Q1 2024: $366,100

Median home price in Q4 2023: $362,500

Median home price in Q1 2023: $368,400

Qualifying income needed with 20% down payment: $92,802

Source: National Association of Realtors

13. Austin, Texas

An aerial view of Austin, Texas. — Austin, Texas

Brandon Bell

Year-over-year price change: -0.3%

Median home price in Q1 2024: $466,700

Median home price in Q4 2023: $466,400

Median home price in Q1 2023: $467,900

Qualifying income needed with 20% down payment: $118,302

Source: National Association of Realtors

14. Crestview, Florida

Okaloosa Island Florida — Crestview is in Okaloosa County, Florida.

Jeffrey Schreier/Getty Images

Crestview is in Okaloosa County, Florida.

Jeffrey Schreier/Getty Images

Year-over-year price change: -0.2%

Median home price in Q1 2024: $399,000

Median home price in Q4 2023: $394,600

Median home price in Q1 2023: $400,000

Qualifying income needed with 20% down payment: $101,141

Source: National Association of Realtors

15. Little Rock, Arkansas

Little Rock, Arkansas, skyline on the river at twilight. — Little Rock, Arkansas.

Sean Pavone/Shutterstock

Little Rock, Arkansas.

Sean Pavone/Shutterstock

Year-over-year price change: -0.1%

Median home price in Q1 2024: $202,800

Median home price in Q4 2023: $200,000

Median home price in Q1 2023: $203,000

Qualifying income needed with 20% down payment: $51,407

Source: National Association of Realtors

This post was originally published on 3rd party site mentioned on the title of this site

15 Cities Where Home Prices Are Declining With Affordability Stretched – Business Insider

These 15 cities are seeing home prices decline even as affordable properties get harder to find

Widespread price gains bring buyers pain

15 cities where home prices are down

1. Elmira, New York

2. San Antonio, Texas

3. Cape Coral, Florida

4. Panama City, Florida

5. Boulder, Colorado

6. Salem, Oregon

7. South Bend, Indiana

8. Logan, Utah

9. Baton Rouge, Louisiana

10. Peoria, Illinois

11. Shreveport, Louisiana

12. Myrtle Beach, South Carolina

13. Austin, Texas

14. Crestview, Florida

15. Little Rock, Arkansas

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