Summary
Home prices in several U.S. cities, especially in Southern states like Florida and Arizona, are dropping. Cities like Tampa, Phoenix, Dallas, and Miami, which saw big price increases during the COVID-19 pandemic, are now experiencing declines. The nationwide trend shows a slowdown in home price growth compared to the pandemic years.
Key Facts
- Tampa, Florida, saw the largest annual home price drop at 4.1% in September.
- Other cities with notable drops include Phoenix, Arizona (-2.0%), Dallas, Texas (-1.3%), and Miami, Florida (-1.3%).
- These cities were popular during the pandemic, leading to high demand and price spikes.
- The drop is due, in part, to an oversupply of homes after a construction boom.
- In September, the national annual home price gain slowed to 1.3%.
- All 20 cities in a recent index reported month-over-month declines in September.
- The Northeast and Midwest cities, like Chicago and New York, are seeing price increases due to limited home inventory.
- High borrowing costs and persistent high home prices are affecting market affordability.
