Home prices are dropping in U.S. metros where for-sale inventory now far outpaces demand, including many Florida and Texas cities.
The U.S. housing market is starting to show signs of a significant shift in favor of buyers, as 14 out of 50 U.S. major metropolitan areas in the country reported annual price drops in the four weeks ending on July 27, according to Redfin data.
These declines come as inventory continues surging across the country, in part because sellers locked into their homes by lower monthly payments have stopped waiting for mortgage rates to come down, and in part because buyers just cannot afford a purchase right now.
As unsold for-sale homes pile up in the market, buyers now have more options available than they had for the past five years—and more negotiating power.Where Have Home Prices Dropped?
While Florida and Texas cities are overrepresented in the list of the 14 U.S. metros which reported year-on-year price drops in the four weeks ending on July 27, the city that faced the steepest decline was Oakland, California, with a fall of 6.8 percent. Here, the median sale price of a home was $931,125 during the same time frame, according to Redfin.
The city was followed by Florida’s West Palm Beach and Jacksonville, which reported year-over-year drops of 4.9 percent and 3.1 percent, respectively, and Texas‘ Austin and Houston, with annual declines of 2.9 percent and 2.8 percent, respectively.
The other metros that experienced drops were Sacramento, California; Fort Lauderdale, Florida; Tampa Florida; Fort Worth, Texas; Las Vegas; Riverside, California; Atlanta; Seattle, and Phoenix.
