The prices of homes listed for sale are plummeting in several places that saw booming sales during the COVID-19 pandemic.
Home-listing prices in all metro areas in the United States dropped by as much as 12% over the past year through September. In comparison, the national median home price fell only 1% year-over-year last month. The median price of homes for sale is now $425,000.
That is according to data from real estate listings website Realtor.com.
Why Home-Listing Prices Are Falling
There are a number of reasons why home-listing prices are falling in the US, especially in pandemic boomtowns. For starters, all four regions in the US saw an increase in active inventory. Listings in the South grew by 42.0%, while inventory rose by 36.5% in the West. Additionally, listings in the Midwest rose by 22.3% and 14.8% in the Northeast.
In addition, the demand for homes in some pandemic boomtowns has died down. Buyers are losing interest in some metro areas like Florida, for instance, due to the rising cost of living and insurance.
The recent weather events also caused some potential buyers to sour on the state. Hurricane Milton, specifically, tore through parts of Florida, dumping more than 18 inches of rain in some areas. It also knocked out power for more than 2.5 million customers in the state.
Which Housing Markets Are Seeing Signs of Cooling Down
Here are the 10 US metro areas where home prices have decreased the most.
Miami, FL
Median list price: $525,000
Year-over-year change: -12.4%
Cincinnati, OH
Median list price: $337,000
Year-over-year change: -9.5%
San Francisco, CA
Median list price: $997,500
Year-over-year change: -8.9%
Kansas City, MO
Median list price: $389,500
Year-over-year change: -8.4%
Austin, TX
Median list price: $520,000
Year-over-year change: -6.6%
Jacksonville, FL
Median list price: $399,000
Year-over-year change: -6.1%
Denver, CO
Median list price: $610,250
Year-over-year change: -6%
Orlando, FL
Median list price: $429,950
Year-over-year change: -5.6%
Tampa, FL
Median list price: $414,948
Year-over-year change: -5.5%
Nashville, TN
Median list price: $547,865
Year-over-year change: -5.4%
