5 Cities Where Homes Will Be a Total Steal In Two Years
The median price of existing home sales fell to $426,900 in June 2024, according to the National Association of Realtors. That’s $15,600 lower than May 2024’s median home sales price of $442,500 reported by Realtor.com. Cities that experience plummeting home prices consistently provide an opportunity for buyers to purchase homes at rock-bottom prices when the trend continues.
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Despite interest rates remaining at historic highs, many metropolitan areas are seeing significant price reductions, offering great deals for homebuyers year after year. These cities are predicted to become a total steal in the next two years.
Also read about various places where houses are suddenly major bargains.
Miami
YOY price drop: 11.2%
Home sales in Miami have fallen 11.2% year over year (YOY). This can be attributed to declining interest in single-family homes and a surge of condominiums and townhouses coming up in the housing market, according to Realtor.com.
In May 2024, condominiums flooded two-thirds of the market with single-family properties occupying the remaining third. Condo listings have increased since 2023 with many new builds on the market.
The upsurge of condos can be a response to interest rates, as they are priced significantly lower than single-family homes in Florida. This causes the median home listing price to wane, according to Newsweek.
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Denver
YOY price drop: 6.3%
Denver median home sale prices dropped 6.3% to $639,000, surprising many people in the industry as most other Western cities remained relatively stable.
With a robust job market, a walkable downtown, blue skies, and scenic mountain peaks, landing your dream home in the Mile High City at a great price may happen sooner than you think.
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Seattle
YOY price drop: 5.5%
Home sales in Emerald City dipped to $770,00 last month, despite sales peaking in May 2024 as summer came underway. High interest rates have priced many homebuyers out of the market forcing them to relocate to affordable suburbs outside the city limits.
If home prices continue to decline, owning a home in Seattle could be a reality for many in the not so distant future.
Kansas City, Missouri
YOY price drop: 4.9%
Home sales are down in Kansas City, averaging $440,000 due to a short supply of inventory.
Another factor that kept buyers from making purchases is the low interest rates of the pandemic, making them hold onto their homes before selling their existing homes to move into a larger or newer single-family home, where they’d have to pay a much higher interest rate.
Oklahoma City
YOY price drop: 4.3%
Oklahoma City saw median home sales fall to $339,000 slightly below Kansas City, Missouri. While the final sale price drop is the highest it’s been in 18 months, and increasing every week, list prices for homes on the market aren’t significantly lower.
The culprit once again was higher interest rates that brought a halt to buyer demand, according to Redfin. Although the real estate market is seeing more price reductions on a weekly basis, home values are not decreasing. Lower home sale prices came as a response from eager sellers who lowered their list prices to acquiesce to the market’s demands.
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