As the leaves change color and the air grows crisper, there's more than just pumpkin spice and cozy sweaters to be excited about — especially for prospective homebuyers.
"Historically, in the spring and summer, average prices tend to be about 7% higher, and you can also expect more multiple-offer situations," says Trey Blanco, a licensed realtor with Bramlett Residential in Austin, one of the previously white-hot markets that have finally started to cool.
"That's why savvy buyers look for a home during the winter months, when there's less competition and sellers are motivated to close deals quickly and offer buyer incentives. Just like in retail, you can often find 'Black Friday' deals on real estate."
This fall season, in particular, presents unique opportunities in the housing market. Home prices in many major U.S. metro areas have declined from their peak in 2022 - which means this could be a golden opportunity for those looking to make their dreams of homeownership a reality.
Home Prices Fall in Some Cities, But Other Costs Are Rising
It's no secret that the housing market has been a rollercoaster over the past few years. In many areas, home prices had soared to unprecedented heights, driven by a combination of low mortgage rates, surging demand (thanks, COVID-19), and a limited supply of homes.
According to data from Realtor.com, the median list price for a single-family home in October 2023 was $425,000, about the same as it was the year before, and down slightly from $429,500 in September. It's also down from the national all-time high of $450,000 in June 2022.
Cooling prices are a plus for anyone looking to buy, but there are still plenty of hurdles to deal with. While prices have come down from their highs in some cities, overall housing inventory still remains tight and mortgage rates are hovering near 8% — the highest they've been in 23 years.
Despite these challenges, this fall stands out as a window of opportunity for those who have been waiting on the sidelines. Here's a look at the top five metro areas where home prices have declined the most so far in 2023.
5 Cities Where Home Prices Have Dropped the Most This Year
Based on monthly data from Realtor.com, these five metro areas have registered the largest year-over-year median home price declines as of October 2023.
1. San Antonio-New Braunfels, Texas
- Median Listing Price October 2023: $347,000
- YoY Price Difference: -2.20%
The hot housing market is finally stabilizing in this Texas energy hub, home to companies like Valero (VLO) and privately held USAA.
2. San Jose-Sunnyvale-Santa Clara, Calif.
- Median Listing Price October 2023: $1,381,000
- YoY Price Difference: -1.30%
The list of Big Tech companies based out of this area is impressive - Intel (INTC), Advanced Micro Devices (AMD), Cisco (CSCO), and Nvidia (NVDA), to name just a few - and if you're living that 7-figure mortgage lifestyle, note that home prices in the semiconductor mecca are finally easing.
3. Memphis, Tenn.-Miss.-Ark.
- Median Listing Price October 2023: $319,000
- YoY Price Difference: -0.50%
Notably, the Memphis metro area - home to FedEx (FDX) corporate - also scored a spot on our list of 5 Cheapest U.S. Cities for Renters.
4. Dallas-Fort Worth-Arlington, Texas
- Median Listing Price October 2023: $449,000
- YoY Price Difference: -0.20%
AT&T (T), Texas Instruments (TXN), and Southwest Airlines (LUV) are just a few of the major corporations that call the sprawling DFW metro area home.
5. Miami-Fort Lauderdale-Pompano Beach, Fla.
- Median Listing Price October 2023: $599,000
- YoY Price Difference: -0.1%
Yep, that's right - it's slightly cheaper now to scoop up a home in the Florida locale that Citadel boss Ken Griffin recently declared “Wall Street South."
Looking to buy in one of these markets, but need help coming up with a down payment? Check out Barchart.com's Homeowner Help: How to Save Money for a Down Payment.
On the date of publication, Meredith Margrave did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
