Buyers Market Alert: Top 5 US Cities with Falling Home Prices - Perfect Time to Negotiate
The housing market is shifting, and it's a great time for homebuyers to take advantage of the current trends. According to a recent report by Redfin, home price growth has slowed in May, with some metros seeing declines. This shift in the market is due to a surplus of sellers and a decrease in buyer interest, which has led to homes sitting on the market for longer periods of time. In May, 15% of pending home sales were canceled, the highest level since 2017. Additionally, less than a third of homes that sold in May went for over their asking price, the lowest level in five years. These figures indicate that buyers are starting to gain the upper hand in negotiations. Redfin predicts that this trend will continue and that home prices will begin to show year-over-year declines by the end of 2025. In fact, some areas of the country are already experiencing declines in home prices. Out of the top 50 metros in the US, 11 of them saw declining home prices. Florida and Texas, two states that saw explosive home price growth in recent years, topped the list for the most cancellations in May. San Antonio and Orlando saw cancellation rates of 21% and 20%, respectively. These metros have experienced significant price appreciation in recent years, which has dampened demand. Additionally, economic uncertainty, natural disasters, and return-to-office mandates are reducing buyer interest in these areas. For buyers, this means it's the perfect time to negotiate with sellers. Redfin agents recommend that buyers not disregard homes just out of their budget, as sellers could be willing to offer concessions or lower the price. Here are the five US cities where home prices are falling the most, along with their year-over-year decline and median sale price: 3. Dallas: -4.6% median sale price change, $415,000 median home sale price 4. Austin: -2.1% median sale price change, $449,000 median home sale price 5. Houston: -1.7% median sale price change, $339,000 median home sale price
If you're in the market for a new home, now may be the time to start your search and take advantage of these favorable market conditions.
