10 US cities where home prices are getting worse — and 5 where they're dropping
(NEXSTAR) — If you've spent the last couple of years waiting for the housing market to cool down, you know that hasn't quite happened. In fact, some markets are only seeing prices rise, despite cooling inflation and still-high mortgage rates.
It's not all bad news. Redfin reported earlier this week that home prices in the U.S. are rising at the slowest pace in nearly a year and a half as new listings also trend up. However, in a report released Thursday, Redfin noted that home prices have hit new highs.
An analysis by personal finance website SmartAsset found that is especially true across multiple markets.
Nationally, SmartAsset found home prices have climbed 6% over the last year, but nearly 49% over the last five. The report reviewed home sale data for the 100 largest cities in the U.S. to determine the one-year and five-year price growth for single-family homes, condos and co-ops.
The analysis found that, while coastal cities are primarily the most expensive, it was otherwise affordable markets that have seen the highest price increases recently.
At the top of the list was Wichita, Kansas (a state that will pay off your student debt if you move there). According to SmartAsset, home prices rose more than 21% in Wichita between April 2023 and April 2024, with the average home sale price hitting $259,000. Prices have jumped more than 69% since 2019, when home prices were, on average, around $153,000 in Wichita.
Below are the 10 cities SmartAsset determined had the largest one-year price changes, as well as the average home sale price in each city as of April 2024:
| Rank | Metro | 1-year price change | Average sale price in April 2024 |
|---|---|---|---|
| 1 | Wichita, Kansas | 21.20% | $259,264 |
| 2 | Toledo, Ohio | 16.40% | $157,176 |
| 3 | Madison, Wisconsin | 15.30% | $387,610 |
| 4 | San Jose, California | 12.90% | $1,502,362 |
| 5 | New Haven, Connecticut | 12.80% | $336,023 |
| 6 | Miami, Florida | 12.60% | $472,421 |
| 7 | Buffalo, New York | 12.20% | $231,596 |
| 8 | Grand Rapids, Michigan | 12.00% | $314,511 |
| 9 | Harrisburg, Pennsylvania | 11.00% | $241,475 |
| 10 | Charleston, South Carolina | 10.90% | $423,050 |
Narrowly missing the top 10 was San Francisco, where the average sale price has climbed almost 11% to $1.13 million over the last year. That's the second-highest price across U.S. metros, coming in just behind San Jose.
Also missing the top 10 was Knoxville, Tennessee, where, according to SmartAsset, home prices have increased 90% over the last five years: in April, the average price was about $334,300, nearly double the $176,400 homes were going for in 2019.
If you're looking for a deal, SmartAsset determined that five major metros have seen home prices decrease within the last year.
Seeing the largest price drop was Cape Coral, Florida, where the average single-family home dropped 5.3% over a year to $310,600. However, a recent Redfin analysis named Cape Coral among a handful of Florida cities that have seen inventory surge over the last year while homes sit on the market longer. A growing prevalence of natural disasters, pushing home insurance costs higher, is also impacting the region's real estate market.
Below are the cities that have seen prices drop as of late.
| Metro | 1-year price change | Average sale price in April 2024 |
|---|---|---|
| Cape Coral, Florida | -5.30% | $310,602 |
| Jackson, Mississippi | -3.70% | $223,310 |
| Birmingham, Alabama | -1.80% | $227,177 |
| Lakeland, Florida | -0.50% | $297,820 |
| Memphis, Tennessee | -0.40% | $226,295 |
You can view SmartAsset's full study here.
If you are holding out for a downshift in home prices, you may be in luck. Redfin noted in its report that sellers are dropping prices on their listings at the highest level since November 2022. Mortgage rates have also fallen, and the asking-price growth has slowed.