Thursday, December 7, 2023

Home Prices Are Falling. Does It Matter? - The New York Times

Median home prices have dropped over a year, but potential buyers and sellers remain stuck in place.

Since peaking at $479,500 during the fourth quarter of 2022, the median sale price of a home in the United States has sagged, landing at $431,000 during the third quarter of 2023. By that point, prices for single-family homes had fallen in 25 of the 100 largest U.S. cities over the course of the year, according to a new study by Point2, while condo prices fell in 37 of the 100 cities. In 15 cities, prices were down for both types of homes. It’s not great news for owners, especially those who settled for a condo last year with a plan to move to a house when the market cooled.

Among the 100 cities, Henderson, Nev., saw its median condo price fall the most compared with last year’s median — owners there lost about 13 percent of their home value during the year, or a $40,000 loss on the median-priced home valued at $269,000. For single-family homes, Memphis saw the greatest year-over-year loss in value, about 17 percent, or $35,000 on a median-price home valued at $170,000. That’s a drain of $96 a day.

When ranking cities by dollar loss rather than percentage change, both condo and single-family homeowners in expensive San Francisco suffered most: The median-price condo ($1,037,500) lost $122,500 in value over the year, or $336 a day, while the median-price single-family home ($1,556,250) lost $81,250 in value, or $223 a day.

Lower prices can signal a shift in the market, but they’re not doing much to help sell homes right now. Owners unwilling to take a loss aren’t listing, leaving both sellers and buyers stuck.

This week’s chart shows the 10 large U.S. cities where the median list price for condos and single-family homes fell the most during the year based on percentage of price.

Biggest One-Year Price Drops

The large U.S. cities where prices fell the most for single-family homes and condos over the course of a year.

Single-Family Homes

Condos

DOLLAR

CHANGE

DOLLAR

CHANGE

PCT.

CHANGE

PCT.

CHANGE

PRICE

PRICE

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Memphis

New Orleans

Atlanta

Detroit

Kansas City, Mo.

Oakland, Calif.

San Antonio

San Francisco

Cleveland

Colorado Springs

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Henderson, Nev.

Memphis

New York

San Francisco

Baltimore

Mesa, Ariz.

Boise, Idaho

Detroit

Pittsburgh

Oakland, Calif.

$170,000

$251,095

$481,000

$64,277

$260,500

$869,407

$275,000

$1,556,250

$118,000

$450,715

–$35,000

–$24,794

–$44,000

–$5,521

–$19,500

–$62,988

–$14,500

–$81,250

–$5,000

–$15,003

–17.1%

–9.0%

–8.4%

–7.9%

–7.0%

–6.8%

–5.0%

–5.0%

–4.1%

–3.2%

$269,000

$165,000

$645,000

$1,037,500

$205,000

$240,000

$402,400

$221,824

$230,000

$574,843

–$40,000

–$22,950

–$80,000

–$122,500

–$20,500

–$24,000

–$32,600

–$17,791

–$17,250

–$43,067

–12.9%

–12.2%

–11.0%

–10.6%

–9.1%

–9.1%

–7.5%

–7.4%

–7.0%

–7.0%

Single-Family Homes

DOLLAR

CHANGE

PCT.

CHANGE

PRICE

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Memphis

New Orleans

Atlanta

Detroit

Kansas City, Mo.

Oakland, Calif.

San Antonio

San Francisco

Cleveland

Colorado Springs

$170,000

$251,095

$481,000

$64,277

$260,500

$869,407

$275,000

$1,556,250

$118,000

$450,715

–$35,000

–$24,794

–$44,000

–$5,521

–$19,500

–$62,988

–$14,500

–$81,250

–$5,000

–$15,003

–17.1%

–9.0%

–8.4%

–7.9%

–7.0%

–6.8%

–5.0%

–5.0%

–4.1%

–3.2%

Condos

DOLLAR

CHANGE

PCT.

CHANGE

LIST PRICE

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Henderson, Nev.

Memphis

New York

San Francisco

Baltimore

Mesa, Ariz.

Boise, Idaho

Detroit

Pittsburgh

Oakland, Calif.

$269,000

$165,000

$645,000

$1,037,500

$205,000

$240,000

$402,400

$221,824

$230,000

$574,843

–$40,000

–$22,950

–$80,000

–$122,500

–$20,500

–$24,000

–$32,600

–$17,791

–$17,250

–$43,067

–12.9%

–12.2%

–11.0%

–10.6%

–9.1%

–9.1%

–7.5%

–7.4%

–7.0%

–7.0%

Source: Point2

By The New York Times

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