Home Prices Are Falling. Does It Matter?

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Home Prices Are Falling. Does It Matter?

Since peaking at $479,500 in the fourth quarter of 2022, the average sales price of a home in the United States has declined and stands at $431,000 in the third quarter of 2023. At that point, single-family home prices had fallen in 25 years, according to a new study from Point2. The 100 largest U.S. cities fell over the year, while condo prices fell in 37 of the 100 cities. Prices for both types of houses fell in 15 cities. That’s not good news for homeowners, especially those who opted for a condo last year and plan to move into a house when the market cools.

Among the 100 cities, Henderson, Nevada, saw the largest decline in the median condo price compared to last year’s average – owners there lost about 13 percent of their home value over the year, a loss of $40,000 from the median condo price Homes equals $269,000. For single-family homes, Memphis saw the largest year-over-year decline in value, about 17 percent, or $35,000, on a median priced home worth $170,000. That’s a charge of $96 per day.

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

Lower prices can be a signal of a market shift, but they don’t do much to help sell homes right now. Owners who don’t want to take a loss don’t list, leaving both sellers and buyers stuck.

This week’s chart shows the 10 major U.S. cities where the average listing price for condos and single-family homes fell the most over the year, as measured by price.

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