Housing Market 2023: 4 Places Where Home Prices Have Dropped As Much As 5% - GOBankingRates

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After extended periods of record-high mortgage rates, potential buyers might benefit from a slight dip in rates. Mortgage rates dropped from over 8% in mid-October to 7.4% in mid-November, according to Mortgage News Daily. In certain metro areas, buyers can also expect home prices to drop alongside mortgage rates for a better buying environment than we’ve seen in recent months.

Texas Takes the Top Two

A recent report from Redfin shows a record share of homes dropping prices across the board.  In the four weeks ending Nov. 5, 6.8% of homes reduced their prices across over 400 metro areas. These are the top four locations with the biggest cut in prices this month: 

1. Austin, Texas: -5.7%
2. Fort Worth, Texas: -2%
3. Tampa, Florida: -0.9%
4. Portland, Oregon: -0.6%

Properties in Austin and Fort Worth Texas are experiencing the deepest price cuts, with Fort Worth dropping by 2% and Austin dropping prices by nearly 6%.

Price Cuts and Concessions

In addition to slashing home prices, some sellers are also offering concessions like mortgage rate buydowns, closing costs, or money for repairs to motivate buyers. If you’re in the market for buying a home, concessions and price reductions could help balance out the expense of accepting a higher mortgage rate.

In the three months ending Oct. 31, 11.5% of homes sold featured both a concession and a price drop. Another 4.4% of homes sold, as profiled by Redfin‘s report, saw a price drop, a concession and sold below the asking price. So while high mortgage rates are discouraging, there could be deep discounts available for buyers who are still competing for homes. Although the national average for homes sold with concessions is 35%, there are five top metro areas where buyers are more likely to get concessions based on the share of homes sold.

1. Salt Lake City, Utah: 63.3%
2. San Diego, California: 60.9%
3. Denver, Colorado: 56.6%
4. Las Vegas, Nevada: 54.3%
5. Raleigh, North Carolina: 51.4%

Conversely, some markets are sustaining fewer concessions compared to last year. Chicago (-21.6%), Phoenix (-7.8%), Philadelphia (-6.8%), San Diego (-6.1%), and Washington, D.C. (-5.8%) saw the largest decreases in concessions compared to 2022 reporting.

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