Bargain bonanza: 15 cities revealed where home prices are falling amid soaring mortgage rates

Dreams of owning a home might seem dashed for many Americans amidst soaring house prices and skyrocketing mortgage rates.

But fear not, bargain hunters. A glimmer of hope shines through as a trove of affordable locales has emerged across the country.

According to a recent report by the National Association of Realtors (NAR), these 15 US cities have bucked the trend of rising home values, offering a respite for prospective buyers.

Topping the list is an upstate New York town steeped in rich culture and history; the roundup also includes three cities in Florida and two each in Texas and Louisiana.

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While the nation witnesses a staggering 5 percent year-on-year increase in the median price of single-family homes, reaching a median of $389,400, some areas are swimming against the tide with select neighborhoods experiencing a decline in home values.

NAR’s chief economist, Lawrence Yun, attributes the discrepancy to the pressing issue of housing supply failing to meet burgeoning demand.

“Rising prices are the direct result of insufficient housing supply not meeting the full demand,” Yun explained, shedding light on the underlying dynamics of the market.

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Leading the pack of bargain locales is New York’s Southern Tier city of Elmira, once hailed as the stomping ground of literary icon Mark Twain.

Surrounded by picturesque landscapes, Elmira saw its property prices plunge by a whopping 15.1% in the first quarter of 2024, setting the stage for an enticing buyer’s market.

Following closely is San Antonio, Texas, which has experienced a 4.6% drop in home values over the past year. The city, once a beacon for remote-working professionals seeking reprieve from urban jungles, now beckons with more affordable housing options amidst a landscape of price corrections.

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Florida, too, makes its mark on the list, with Cape Coral witnessing a 4.4% dip in median house prices. From bustling urban hubs to serene coastal enclaves, these bargain spots present a diverse array of opportunities for eager homebuyers.

The 12 other cities that have seen a decline in home values include: Panama City, Florida; Boulder, Colorado; Salem, Oregon; South Bend, Indiana; Logan, Utah; Baton Rouge, Louisiana; Peoria, Illinois; Shreveport, Louisiana; Myrtle Beach, South Carolina; Austin, Texas; Crestview, Florida; and Little Rock, Arkansas.

As mortgage rates surge past 7 percent, prospective buyers face the daunting reality of shelling out more than $900 a month compared to just two years ago.

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