After a couple of years of unprecedented home price growth, American home buyers could really use a break in the real estate market.
The good news is that break is finally here — and it's bringing affordability back toward earth in many metros across the country.
In stark contrast to 2020 and 2021, US home sales have slowed dramatically as higher mortgage rates discourage many would-be buyers and homeowners from entering the market at all. This has led to some robust price cuts, especially in previously hot pandemic boomtowns — like Austin, Texas; Boise, Idaho, and Phoenix — where prices surged and homebuilders have been adding inventory.
"Those markets that got the most juiced during the pandemic — where the prices really took off — are the markets where they're now suffering the biggest declines" because affordability was hit the hardest there, Mark Zandi, the chief economist at Moody's Analytics, said in a statement.
As home prices continue to decline in many parts of the nation, Realtor.com identified where homebuyers can finally see some deals. The company analyzed the median price per square foot in 100 of the largest US metropolitan areas, and considered the change in prices in the year through May.
While most cities on Realtor.com's list have long been popular, a few others — like Myrtle Beach, South Carolina; and North Port, Florida — are lesser known but also saw an increase in real estate development throughout the pandemic.
"There's actually a lot of building going on in the Myrtle Beach market," Danielle Hale, the chief economist at Realtor.com, told Insider. "That is one reason we're not seeing the same price gains as other markets. We're actually seeing modest declines in the price per square foot."
However, just because home prices are falling in a metro doesn't mean it's a bargain. Take Austin, where the median home price has fallen 7.7% since May 2022 but is still $142,751 above the national median of $441,000. When moving to a new city, it's important to consider your personal finances as well as other factors such as employment, education and healthcare.
Keep reading to see the 10 US cities where home prices are falling the most, how home prices have fared in each metro since 2022, and their current median home values, according to Realtor.com data.