Real estate as a whole is experiencing a whirlwind of changes. It’s enough to make your head spin from the firesale-like buying spree during and post-pandemic to inventory shortages and home price hikes. At the same time, interest rates seemingly doubled overnight, even in the National Association of Realtors dispute and subsequent settlement. Fortunately, there will continue to be opportunities at the end of the proverbial real estate tunnel.
One of the first metrics real estate professionals and their clientele may fixate on is the overall price and value of homes for sale and listed on the local and consumer-facing MLS. While several locations across the country have risen substantially (in many cases, home values and prices are nearly twice that of just a few years ago), we have compiled a list of several locations nationwide where home prices are beginning to fall.
Miami, Florida
Median Home Value: $550,000
Once widely referred to as “The Magic City,” Miami has experienced the sharpest median home price decline year over year (with averages falling by as much as 8%). This comes when tourism should flourish, and home sales normally become quite stagnant (summer is often slower in South Florida) but hold their overall resale value. That said, the median home price for Miami and surrounding areas is still much higher than the national average.
Oklahoma City, Oklahoma
Median Home Value: $323,000
Often known for being one of the world’s largest locations for livestock (chickens, cattle, etc.) and sitting atop one of the larger oil and natural gas deposits in the southern United States. Though Oklahoma City is somewhat of an up-and-coming location for real estate investors and agents alike, the average or median home value may have been priced out higher than the area was ready or able to support (home values have dropped roughly 6% year over year). Oklahoma City is still an up-and-coming market for real estate investors and agents alike.
Cincinnati, Ohio
Median Home Value: $337,000
Once known as “The Beer Capital Of The World,” Cincinnati is still home to several breweries (roughly 50), but the housing market has become even more intriguing in recent years. Ohio has always been a reasonably cheap place to find a home, but the values rose above what most forecasters had predicted post-pandemic. As the market came to terms with higher interest rates and cost of living overall, Cincinnati’s home values began to fall more than many locals and aspiring newcomers would have liked. Overall, Cincinnati’s median listed housing price has fallen by nearly 7%, and many have stated they do not believe that’s the floor.
Kansas City, Missouri
Median Home Value: $421,000
Even though many may argue that Kansas City isn’t a major hotspot for real estate, they’d be wrong. With several museums, world-famous BBQ as far as the eye can see, and perennial NFL championships in their Kansas City Chiefs football team, KC is a major draw for more reasons than most could count. With that in mind, at least for a short time, Kansas City had become a top destination for home buyers, sellers and investors. Fortunately for today’s investors, the KC market is starting to decline slightly, meaning more opportunity for investments with a better long-term return (the Kansas City housing market has softened by as much as -5% on average).
Denver, Colorado
Median Home Value: $610,000
What once was just a small mining town in the west has truly evolved into something much more. Denver has quietly become a staple city in the United States, with activities ranging from main stage events such as professional basketball (Denver Nuggets) to the more tranquil activities of hiking, fishing and skiing (to name a few). Those attractions, paired with a world-class airport, gave Denver a huge boost in median home prices; as residents from Los Angeles to New York City have been drawn to its scenic views and somewhat secluded location (in the mountains), Denver became an ideal place for a second home or even a perfect relocation destination. Despite its median price tag (just over $600k in most cases), Denver’s median home values have surprisingly decreased as much as 3.6%. If there were a time to consider investing in Denver real estate, sooner rather than later may be the best bet.
San Jose, California
Median Home Value: $1,367,000
Do you know the way to San Jose? In most cases, the only way to buy real estate here is to have an overall net worth of half a million or more (the average price of a home in San Jose is an astounding $1.3 million or more). It’s true; San Jose was once one of the major cities along the California coast. That said, few would recommend buying or searching for real estate in the area as most of the city is poverty-stricken, without a real answer as to how to reverse it. All things considered, the median housing price in San Jose has fallen and will likely continue to do so as interest rates for real estate continue to hold (median housing prices have lost as much as 2.5% year over year).
Raleigh, North Carolina
Median Home Value: $440,000
If you’re looking for a great place to buy or sell real estate, most agents and brokers in Raleigh would agree that this southern state city is quickly becoming a hotspot for lower costs of living, as well as being well-located about the beach, outdoors and other major cities. Not only North Carolina’s state capitol, Raleigh is home to a vibrant education system and an eye toward curbing climate change (due to human activity), including areas within the city known as “green zones.” Overall, the residents and real estate professionals will note that while Raleigh is not the most expensive real estate in the great state of North Carolina, it is often thought of as one of the most promising (home prices fell by over 25 year over year). Affordability, innovation, green spaces, and quality of life are many of the hallmarks of the appeal.
San Antonio, Texas
Median Home Value: $335,000
Real estate professionals often describe San Antonio as one of Texas’s most affordable and promising cities of the next decade (home prices and values fell roughly 1.5% year over year). With a blend of traditional religious and Spanish groups, the community of San Antonio has become quite the melting pot. This and several other factors have helped the city create and maintain its dominance in areas like aerospace, healthcare, bioscience, and cybersecurity (to name a few). Outside of the city’s significant accomplishments in industry, San Antonio is also home to several opportunities to experience the great outdoors. From learning how to ride a horse or even exploring the city’s decadent “old west” history, current and new residents will find activities for themselves or the whole family!
Portland, Oregon
Median Home Value: $989,000
Oregon doesn’t get enough credit for its role in short—and long-term real estate investment opportunities. Once considered the “most dangerous port of the West Coast,” Portland cleaned up its crime rate and upgraded its downtown and suburban areas. Now, more than ever, residents can confidently walk the city or venture off to Forest Park, Washington Park, or over a dozen other outdoor attractions (there are more parks in Oregon than most places in the world). Real estate agents and investors can count on one thing: Portland will only increase overall resale values in real estate! This may be the best time to find and invest in Portland real estate!
