Prospective homeowners looking to live in the western part of the US should put Phoenix, Arizona, at the top of their list.
While the city remains warm thanks to the desert heat, home prices are finally cooling, with 25 percent of property listings in the city experiencing price reductions.
The change signals a more favorable market for buyers as prices begin to fall after years of rapid growth.
The news will be welcome to cash-strapped first-time buyers and others who have been shut out by higher mortgage costs.
Last month, the Federal Reserve cut interest rates, bringing mortgage rates down to 6.2%, the lowest since September 2023.
Prospective homeowners looking to live in the western part of the U.S. should consider putting Phoenix, Arizona, at the top of their list.
While the city remains warm thanks to the heart of the desert, home prices are cooling, with 25 percent of property listings in the city experiencing price reductions.
With a significant portion of homes also discounted, buyers can now find more affordable options within their reach.
Experts suggest the trend could create opportunities for first-time buyers and those looking to move up.
“The percentage of homes with price reductions increased from 17.7% in September of last year to 18.6% this year,” economist Ralph McLaughlin told real estate agent.com.
“What’s more, the overall share of inventory with price cuts is 1.0 percentage points higher than the shares seen between September 2017 and September 2019.”
It is a case of supply and demand that is contributing to the recent price declines.
With lower interest rates, both buyers and sellers have entered the market, and those already selling are lowering their prices to remain competitive against the influx of new listings.
In September, the US housing market saw a 34 percent increase in the number of available homes compared to the same period last year. The number of unsold properties also increased by 22.9 percent.
The number of new listings has also grown 11.9 percent year over year, meaning there are now more options for buyers and sellers are essentially being pressured to lower their prices if they want to stand out.
“Price cuts indicate that homes are not selling as quickly as expected, leading sellers to lower prices to attract more interest,” McLaughlin said.
It is a case of supply and demand that is contributing to the recent price declines. With lower interest rates, both buyers and sellers have entered the market, and those already selling are lowering their prices to remain competitive against the influx of new listings.
Phoenix, Arizona has seen 25 percent of its listings suffer price drops with the median home price now $532,000.
Although housing prices have increased recently, they remain relatively affordable compared to other major US cities and offer a variety of options, from affordable condominiums to spacious single-family homes.
Aside from affordable housing, the city attracts people for its year-round sunny weather, affordable housing, and a growing job market.
The city’s lower cost of living compared to other major cities also makes it attractive to families and professionals.
Outdoor lovers enjoy being close to desert landscapes for recreation while the local economy thrives, particularly in sectors such as technology and healthcare.
Although home prices have recently increased in Phoenix, Arizona, to a median of $532,000, they remain relatively affordable compared to other major US cities.
Austin, Texas is next on the list, again with 25 percent of property listings having their sales prices slashed. The median home price is $556,000.
Although housing prices have increased in recent years due to high demand, the city still offers a variety of options, from apartments to single-family homes, to suit a variety of budgets.
Austin attracts many for its thriving tech industry with job opportunities, especially at startups and more established companies.
The city offers a vibrant cultural scene and is known for its live music, festivals and diverse restaurant options.
Outdoor enthusiasts enjoy its parks, lakes, and hiking trails.
Austin also has a relatively lower cost of living compared to other tech hubs like Silicon Valley.
Its unique combination of urban living with a relaxed and creative atmosphere makes it a popular destination for young professionals and families alike.
At a median price of $556,000, buyers in Austin have the opportunity to live in spacious homes and enjoy a warm climate and mild winters year-round.
Denver, Colorado has seen listings drop 25.2 percent and the media price is now $649,000.
While home prices have traditionally been high, recent market trends show home prices are more competitive, giving potential buyers better opportunities in this growing city.
Residents enjoy a stunning natural environment and a thriving outdoor lifestyle.
With the Rocky Mountains just a short drive away, people can enjoy activities like hiking, skiing, and biking year-round.
The city also has a vibrant arts and culture scene, craft breweries, and a strong economy, particularly in technology and healthcare.
Combined with a median list price of $649,000, Denver, Colorado is one of the best options for those looking to live in a scenic area with multiple outdoor activity options.
Virginia Beach, Virginia 25.9 percent of listings have suffered a price drop in the last year. The median price for this coastal city is now $649,000.
Although still expensive, hose prices have moderated, creating more affordability and opportunities for potential buyers looking to live on the coast.
The city offers an attractive mix of coastal living and suburban amenities, making it a popular destination for those who love the outdoors.
With its beautiful beaches, boardwalk and numerous parks, it is ideal for those seeking an active lifestyle.
The city also has a strong economy supported by military bases, tourism and healthcare with a family-friendly atmosphere, good schools and safe neighborhoods, making it a great place to raise children.
In Virginia Beach, Virginia, 25.9 percent of listings suffered a price drop in the last year. The median price for this coastal city is now $649,000.
Washington, DC rounds out the top five with 25.9 percent of listings taking a price cut. The median home price in the nation’s capital is currently $599,948.
Washington, D.C. Rounding out the top five with 25.9 percent of listings seeing a price cut. The average price of a home in the country’s capital is currently $599,948.
While home prices may be higher due to its popularity, recent changes in the market have led to more competitive pricing, making it increasingly attractive to buyers seeking both professional growth and cultural experiences.
The rural city’s political center offers career opportunities in government, law, international relations and numerous industries linked to politics and advocacy.
Its diverse neighborhoods, world-class museums and historical monuments contribute to the city’s vibrant life.
DC also has a strong public transportation system, making it convenient for locals who enjoy access to beautiful parks like Rock Creek and the National Mall.