The adage "what goes up must come down" is especially true in the real-estate market, where a slowdown in homebuying has led to price declines in cities across the country.
The median sales price for the entire US actually went up a bit — to $442,500 — in May from the previous May, which means buying a home hasn't become significantly more affordable for the typical American since last year.
However, with would-be buyers holding back, leading to less competition for homes, home prices in several major US metros have dropped by thousands of dollars, according to a new report from Realtor.com.
It comes down to consistently high mortgage rates and an overall increase in home financing costs, which have sidelined many prospective buyers.
"Higher mortgage rates compared with last May increased the monthly cost of financing 80% of the median home by roughly $158 compared with a year ago," said Danielle Hale, Redfin's chief economist. "This increased the required household income to purchase the median-priced home by $6,400, to $119,700, after also accounting for the cost of tax and insurance."
While this locks many Americans out of the market, it's good news for those who can still afford to buy a home in their area.
In pandemic boomtowns like Miami and Austin, which drew thousands of homebuyers looking for relatively affordable homes and more space, a pullback in demand has caused homes to stay on the market longer, prompting many sellers to reduce their prices.
In May, home prices in Miami and Austin dropped by 11.2% and 3.1%, respectively, compared to the same period in 2023, according to the report.
Realtor.com analyzed data from 50 of the largest US metros to calculate which ones saw the largest home-price declines in May.
Below are the 11 big cities with the largest price drops.