Rising home prices and high mortgage rates may have frozen many Americans’ dreams of buying a home. But a treasure trove of bargain points is popping up across the country.
A new report from the National Association of Realtors (NAR) found 15 cities where home values have fallen sharply this year.
Among them are neighborhoods in New York, Texas and Florida.
These areas are at odds with a nationwide trend that has seen the median price of a single-family home increase 5 percent year over year to a median of $389,400.
At the same time, mortgage rates have surpassed 7 percent, meaning buyers face paying more than $900 a month for a standard home than if they had bought it two years ago.
Elmira in New York saw the biggest drop of any US neighborhood, with properties falling to $135,800 in the first three months of 2024. Pictured: Elmira
The city is surrounded by hills and rivers and has a population of 26,700 people. Pictured: The Christmas House store in a Queen Anne-style Victorian home in Elmira
According to the NAR, potential newcomers to the area would need to earn $34,424 to qualify for a mortgage with a 20 percent down payment. Pictured: A three-bedroom home for sale in Elmira for $95,900
The area, once the famous home of author Mark Twain, is located in Chemung County and is most famous for its rich culture, art, and historical sites. Pictured: Twain’s octagonal studio built on the grounds of Quarry Farm in Elmira
NAR Chief Economist Lawrence Yun said: ‘Surprisingly, more than 90 percent of the country’s metropolitan areas experienced growth in home prices despite facing the highest mortgage rates in two decades.
“In the current market, rising prices are a direct result of an insufficient supply of housing that is not meeting all demand.”
But 15 cities saw their prices fall in the first quarter of the year compared to the same period in 2023, the NAR said.
Elmira in New York saw the biggest drop of any U.S. neighborhood, with properties falling to $135,800 in the first three months of 2024. It marked a 15.1 percent drop from $160,000 last year.
Elmira was followed by San Antonio, TX (pictured), where home values decreased 4.6 percent in the past year.
South Bend, IN (pictured) also made the list, with the median home price falling 1.6 percent to $180,000.
A three-bedroom, one-bathroom property in South Bend is currently available on Redfin for $159,900
The area, once the famous home of author Mark Twain, is located in Chemung County and is most famous for its rich culture, art, and historical sites.
The city is surrounded by hills and rivers and has a population of 26,700 people.
According to the NAR, potential newcomers to the area would need to earn $34,424 to qualify for a mortgage with a 20 percent down payment.
Elmira was followed by San Antonio, TX, where home values decreased 4.6 percent in the past year.
The drop is likely an overdue price correction after San Antonio became one of the hottest real estate markets to emerge from the pandemic.
White-collar employees moved to the area in droves after the shift to remote work freed them from their San Francisco and New York offices.
The median home price in San Antonio fell to $305,800 in the first three months of 2024, from $320,500 in the same period last year.
In Shreveport, Los Angeles (pictured), home prices have fallen 0.9 percent since last year, data shows.
A 2,589-foot property in Shreveport is currently listed on Redfin for $250,000
The median home price in Peoria, IL (pictured) is now $127,200
It means a buyer would now need an income of $77,516 to qualify for a home with a 20 percent down payment.
Meanwhile, three Florida neighborhoods made the list. In Cape Coral the median home price fell 4.4 percent, from $415,000 to $434,000 in the same period last year.
Crestview and Panama City also experienced similar drops. Other neighborhoods included: Boulder, CO, Salem, OR, South Bend, IN, Logan, UT, Baton Rouge, LA, Peoria, IL, Shreveport, LA, Myrtle Beach, SC, Austin, TX, and Little Rock, AK.
| Neighborhood | Average house price | Change from year to year |
|---|---|---|
| Elmira, New York | $135,800 | -15.10% |
| San Antonio, Texas | $305,800 | -4.60% |
| Cape Coral, Florida | $415,000 | -4.40% |
| Panama City, Florida | $351,000 | -3.80% |
| rock, colorado | $822,400 | -1.70% |
| Salem, Oregon | $446,000 | -1.70% |
| South Bend (Indiana) | $180,000 | -1.60% |
| Logan (Utah) | $436,100 | -1.30% |
| Baton Rouge, Louisiana | $260,000 | -1.10% |
| Peoria, Illinois | $127,200 | -1.10% |
| Shreveport, Louisiana | $213,600 | -0.90% |
| Myrtle Beach, South Carolina | $366,100 | -0.60% |
| Austin, Texas | $466,700 | -0.30% |
| Crestview, Florida | $399,000 | -0.20% |
| Little Rock, Arkansas | $202,800 | -0.10% |