*Let me clarify that the median is different from the average price.*
The housing market is always changing, depending on whether it favors buyers, sellers, or neither. Recently, there have been signs that the market might be shifting in favor of buyers. Although mortgage rates have risen again after a dip last month, more than half of the top 50 U.S. cities have seen median listing prices drop year-over-year, with some cities experiencing declines of over 12%.
This is welcome news for buyers who have struggled with rising home prices for years. In June 2023, the median home price hit an all-time high of $445,000.
According to Realtor.com economist Joel Berner, the median price of homes sold in September of this year dropped 1% from last year, landing at $425,000.
However, the median price per square foot increased by 2.3%, indicating that the inventory of smaller, more affordable homes has grown.
In other words, while the median home price has dropped, it’s likely that the price for comparable homes has actually increased.
But in some cities, home prices are indeed falling.
Why are prices falling?
Take Florida, for example. During the COVID-19 pandemic, Florida experienced a massive housing boom. Now, four out of the top 10 major cities in the state (Miami, Jacksonville, Orlando, and Tampa) are seeing price declines. The remote work trend contributed to the price increase, but many people moved to Florida primarily for its lack of state income tax and their preference for the state’s political climate.
The influx of new residents led to more homes being built, which has helped lower the median price. Naturally, with more smaller, cheaper homes available, the median price has fallen. However, cities like Miami still have median listing prices that are more than 50% higher than before the pandemic.
It’s important to note that this data was collected before Hurricanes Helene and Milton hit the state. This week alone, I’ve received three calls from Florida residents saying they want to relocate to safer areas due to fears of future storms. As climate change leads to more frequent natural disasters, it’s possible that southern real estate markets could shift further in favor of buyers.
#시카고복덕방 #리얼터 #리얼터한상철 #한인리얼터 #시카고한인리얼터 #시카고 #일리노이 #일리노이한인리얼터 #시카고리얼터 #한인부동산칼럼 #일리노이리얼터 #부동산 #한인부동산 #부동산중개인 #미국 #Realtor_SangHan #realtorsanghan #realtor #realestateagent #help_everyone_live_in_a_better_home #chicagokoreanrealtor #buying #mortgage #interestrate #asset #자산증가
Comments