8 Cities Where Housing Is Currently a Buyer’s Market

As real estate markets fluctuate, they shift between buyer’s and seller’s markets. These terms don’t necessarily mean that homes are cheaper or more expensive — they just point out who has an advantage in a given area.

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This hasn’t been the best year for real estate, but here’s the good news: Buyer’s markets are more common than you might think. Here are eight U.S. cities that currently favor buyers over sellers, plus insights into each housing market .

What Is a Buyer’s Market?

Buyer’s and seller’s markets are the result of shifts in supply and demand. In real estate, a buyer’s market occurs when supply outpaces demand, leading to slower sales and more available properties. This may happen for a variety of reasons, such as rising mortgage rates, an outflow of residents, economic challenges or a surge in new investment properties.

A buyer’s market can occur on a national or state level. For example, California last experienced a statewide buyer’s market in February 2012, per The Real Deal . However, fluctuations between buyer’s and seller’s markets are much more common on a regional level. As the demand for housing in a certain city, neighborhood or school district shifts, the real estate market shifts with it.

Does a buyer’s market lead to lower prices in that area? Generally, yes — but remember that prices are relative. Honolulu, for example, is one of the most expensive housing markets in the U.S., but it’s also currently considered a buyer’s market. That could mean a long-term price drop in the local housing market if the supply continues to outpace demand.

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Top 8 Buyer’s Markets in the U.S.

Looking for the best place to buy a home? While there are plenty of factors to consider — great neighborhoods, school districts, job opportunities and more — one way to seek out a good deal is to look for a buyer’s market.

Here are eight U.S. cities that Zillow’s latest Market Heat Index has rated as buyer’s markets. If you’re shopping for a home in one of these areas, now could be a great time to buy.

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Cape Coral, Florida

• Median listing price: $455,000
• Median sold home price: $380,000
• Year-over-year price change: -7%

Cape Coral is a coastal city in southwestern Florida. It’s known for its extensive canals, boating and marine wildlife. Home prices in Cape Coral have been steadily dropping since their latest peak in April 2023. On average, homes sell for around 9% below the asking price, and most homes remain on the market for around 73 days.

Cape Coral is currently seen as an overvalued market. That may be due to an influx of retirees and remote workers moving to the area in recent years, driving demand for housing. However, the recent stabilization has led to lower premiums and an increased supply, making it a buyer’s market in 2024.

McAllen, Texas

• Median listing price: $309,000
• Median sold home price: $292,600
• Year-over-year price change: -4.1%

McAllen is a border town in southern Texas with a young, multicultural community. This town is known for its vibrant shopping centers and tourism. With a median year-over-year price decline of around 4%, McAllen is currently a buyer’s market. Most homes sell for close to the asking price, and the average time spent on the market is around 63 days.

Home prices in McAllen have plateaued over the past few months. The high demand for homes in previous years may have been driven by young families and professionals moving to the area. Now that the demand appears to have stabilized, buyers can likely expect prices to continue falling.

New Orleans

• Median listing price: $359,900
• Median sold home price: $470,000
• Year-over-year price change: -2.7%

New Orleans is one of the most popular tourist cities in the South. Known for its vibrant culture and rich history, this city attracts young professionals, families and retirees alike.

The housing market in New Orleans is currently not very competitive, with a slight decrease in prices since last year. Most homes sit on the market for around 68 days. On average, homes sell for just less than 4% below the asking price.

Home prices in New Orleans have risen slightly this year but have declined in the past few months. That decline has led to more homes being sold, with the average time on the market dropping from 91 days to 68 between January and June. It’s possible that home prices in the Big Easy will continue to decline in the coming months and years — however, that could eventually create a slightly more competitive market if the trend continues.

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Deltona, Florida

• Median listing price: $331,000
• Median sold home price: $354,600
• Year-over-year price change: -1.2%

Deltona is a central Florida town halfway between Orlando and Daytona Beach. This is a popular bedroom community, with most residents working outside the city. It’s known as a family-friendly area with plenty of parks and safe outdoor spaces.

Home prices in Deltona have remained fairly stable over the past year. Most homes sell for slightly below the asking price — 1.3% — after around 38 days on the market. Although Deltona’s market is slightly more competitive than some of the other cities on this list, it’s still currently a buyer’s market, and a good option if you’re looking for an affordable family home in the Florida panhandle.

North Port, Florida

• Median listing price: $390,000
• Median sold home price: $347,500
• Year-over-year price change: -4.9%

North Port, another southern Florida town, is located near the coast, between Sarasota and Fort Myers. This fast-growing city is popular among retirees. In fact, Quicken Loans named it the second-fastest-growing city in 2023, just behind Cape Coral.

Despite that rapid growth, the home supply is outpacing demand in North Port, and prices have dropped by nearly 5% in the past year. Homes stay on the market for around 79 days and sell for 4.3% below the asking price on average. That’s the highest average time on market in the past three years, indicating that the competition for homes in North Port is steadily decreasing.

Miami

• Median listing price: $655,000
• Median sold home price: $559,500
• Year-over-year price change: -3%

Miami, one of the most popular vacation destinations in the country, is known for its exciting nightlife, beaches, shopping and more. This is a popular destination for both families and retirees. Although slightly more expensive than some of the other Florida cities on this list, prices in Miami have fallen by around 3% since last year. On average, homes sell for around 3.3% below the asking price after 64 days on the market.

The surplus of supply in the Miami housing market may be due to an outflow of residents. Miami has lost around 15,000 residents since the start of the COVID-19 pandemic in 2020, per Miami Today . This stands out from other Florida cities, such as Cape Coral and North Point, which are rapidly growing.

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Honolulu

• Median listing price: $630,000
• Median sold home price: $605,000
• Year-over-year price change: -10%

Honolulu, the capital of Hawaii, is an urban center with plenty of outdoor recreation and a thriving job market. Although the cost of living is higher than in many mainland U.S. cities, Honolulu’s natural beauty attracts homebuyers who want to settle into island life.

Home prices in urban Honolulu are notoriously high. It’s ranked as one of the most expensive housing markets in the U.S., just behind New York, Los Angeles and San Francisco. However, prices are quickly falling as the market stabilizes. Home prices have dropped by 10% in the past year, and most houses sell for around 1.6% below the asking price. The average home stays on the market for around 65 days.

This sudden drop might be due to high mortgage rates and economic uncertainties keeping people from buying homes in Honolulu. As prices continue to fall, now could be a great time to buy if you have the means.

Memphis, Tennessee

• Median listing price: $225,700
• Median sold home price: $169,000
• Year-over-year price change: 15.7%

Memphis, known for its country music scene and tourist destinations, offers a median home price that’s around 50% below the national average. These low prices attract families and young professionals moving from other areas of the country — which may be why home prices in Memphis are currently on the rise.

Despite a nearly 16% price increase in the past year, Memphis is still a buyer’s market. The average home sells for around 4% below the asking price and spends 45 days on the market. Supply is still outpacing demand in Memphis. However, as the city continues to gain popularity among younger homebuyers, that may change. If you’re looking for a smart investment, now may be a great time to buy a home in Memphis, as it’s likely to appreciate in value in the coming years.

All listing price, sold home price, price change, asking price and days on market figures were sourced from Realtor.com .

This article originally appeared on GOBankingRates.com : 8 Cities Where Housing Is Currently a Buyer’s Market