10 Cities Where Home Prices are Falling the Most (2024)

Today’s housing market couldn’t be more different from the sizzling market of 2020 and 2021. Instead of flying off the market as soon as they’re listed, a growing number of today’s houses are languishing — and to the dismay of homeowners, their values are declining.

Although much of the nation has experienced a drop in home prices, some areas of the country have been hit harder than others.

According to the S&P; CoreLogic Case-Shiller Index — which measures real estate prices in the U.S. — these 10 cities experienced the most dramatic home price drops between July and August 2022.

Purchasing a home in one of these cities may soon become less expensive, eliminating a source of financial stress for buyers who have been priced out of the market to this point.

Price decline from July to August: -1.3%

For the most part, cities in the West are experiencing the biggest drop in housing prices compared to the rest of the country. Las Vegas is no exception.

In spite of the recent slide in prices, Vegas homes are far from affordable — a 1.3% decline is just a drop in the bucket after prices boomed during the pandemic. Time will tell if steeper declines are on the way.

Price change from July to August: -1.5%

During the pandemic, homeowners in the District of Columbia could expect their home to sell at asking price, if not higher: In August 2021, sellers got an average of 101% of their original asking price, often after a bidding war.

By this August, things had changed. Washington, D.C., sellers were getting closer to 84% of asking prices, according to the RE/MAX National Housing Report.

Price change from July to August: -1.9%

Dallas’s home prices are beginning to slide. Higher inventory accounts for some of that decline.

For example, in Collin County — which encompasses part of the Dallas-Fort Worth area — housing inventory is up 77.3% year over year, according to a Collin County Association of Realtors report.

Price change from July to August: -1.9%

Portland’s housing market is cooling along with the rest of the country. But even in light of the recent price decline, it’s tough to afford a home here.

The Portland Business Journal estimates that houses remain out of reach for families and individuals making a salary under six figures.

Price change from July to August: -2.1%

Prices here are dropping in Phoenix, and homes are remaining on the market longer.

By September, homes were remaining on the market for an average of 43 days, a jump of 17 days compared to the previous year, according to Redfin.

Price change from July to August: -2.3%

Denver’s month-to-month 2.3% drop in prices didn’t stop the city from experiencing the highest-ever median and average closing prices on record for the month of September.

Although the year-over-year numbers remain strong, things may be changing. More inventory is coming online and buyers are becoming increasingly cautious as they shop for a home.

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Price change from July to August: -2.3%

Typically, the housing market in Los Angeles rises during the early summer. However, prices sank 1.6% between June and July, and another 2.3% from July to August.

The City of Angels is just one of several California cities experiencing price dips now.

Price change from July to August: -2.8%

Like Los Angeles, San Diego has seen steep declines in house prices since June. Prices dipped 2.6% from June to July and another 2.8% from July to August.

By September, Redfin was characterizing the market as “somewhat competitive,” with homes getting three offers on average and selling after about 26 days on the market.

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Price change from July to August: -3.9%

The Seattle housing market experienced a steep price drop between July and August, but that doesn’t mean the city’s notoriously pricey houses are affordable.

Compared to last year, Seattle’s median housing price in August jumped 9.9%. But it is possible that more price relief is around the corner.

Price change from July to August: -4.3%

Yes, San Francisco’s home prices are falling faster than any in the nation. But the Bay Area remains a notoriously expensive place to live.

That won’t change anytime soon. However, prices likely will continue to drop a bit, making homes somewhat more affordable.

After years of soaring home prices, recent trends suggest that values now are beginning to come down. That is good news for renters who would like to buy a home.

One of the best ways to lower your mortgage costs is to eliminate your debt and improve your credit score. Those with better credit status get the lowest mortgage rates.

So, use this time to get your financial house in order as you wait to see how far prices might fall in your market.