REVEALED: The top US city that’s slashing home prices by THOUSANDS

Prospective homeowners looking to live in the western part of the US should put Phoenix, Arizona at the top of their list.

While the city remains warm thanks to the desert heat, home prices are finally cooling off, with 25 percent of the city’s real estate listings seeing price reductions.

This shift signals a more favorable market for buyers as prices begin to fall after years of rapid growth.

The news will be welcome for first-time buyers who are strapped for cash and others who are priced out due to higher mortgage costs.

Last month, the Federal Reserve cut rates, sending mortgage rates down to 6.2% – the lowest level since September 2023.

With a significant portion of homes also being discounted, buyers may now be able to find more affordable options within their reach.

Experts suggest the trend could create opportunities for first-time buyers and those looking to take things further.

“The percentage of homes with price reductions has risen from 17.7% in September last year to 18.6% this year,” economist Ralph McLaughlin told Realtor.com.

“Additionally, the total stock share with price cuts is 1.0 percentage points higher than the shares between September 2017 and September 2019.”

It is a matter of supply and demand that is contributing to the recent price drops.

With lower interest rates, both buyers and sellers have now entered the market, with those already selling lowering their prices to stay competitive against the influx of new listings.

In September, the US housing market saw a 34 percent increase in the number of available homes compared to the same period last year. The number of unsold homes also increased by 22.9 percent.

The number of new listings has also grown by 11.9 percent year on year, meaning there is now more choice for buyers and sellers are being pressured to lower their prices if they want to stand out.

“Price reductions indicate that homes are not selling as quickly as expected, forcing sellers to lower prices to generate more interest,” says McLaughlin.

Phoenix, Ariz has seen 25 percent of its listings experience price drops, with the median home price now at $532,000.

Although home prices have risen recently, they remain relatively affordable compared to other major US cities, offering a variety of options from affordable apartments to spacious single-family homes.

In addition to affordable housing, the city attracts people with year-round sunny weather, affordable housing and a growing job market.

The city’s lower cost of living compared to other major cities also makes it attractive to families and professionals.

Outdoor enthusiasts love being close to desert landscapes for recreation, while the local economy is booming, especially in sectors like technology and healthcare.

Austin, Texas is next on the list, where the asking price of 25 percent of real estate advertisements has again been reduced. The median home price is $556,000.

Although home prices have risen in recent years due to high demand, the city still offers a range of options, from apartments to single-family homes, appealing to a variety of budgets.

Austin appeals to many for its booming tech industry with job opportunities, especially among startups and more established companies.

The city offers a vibrant cultural scene and is known for its live music, festivals and diverse restaurant options.

Outdoor enthusiasts enjoy the parks, lakes and hiking trails.

Austin also has a relatively lower cost of living compared to other technology hubs such as Silicon Valley.

The unique blend of city life with a relaxed, creative atmosphere makes it a popular destination for young professionals and families alike.

Denver, Colorado has seen a 25.2 percent decline in mentions, while its media price is now $649,000.

Although home prices have historically been high, recent market trends show homes being priced more competitively, providing potential buyers with better opportunities in this growing city.

Residents enjoy a beautiful natural environment and a flourishing outdoor life.

With the Rocky Mountains just a short drive away, people can enjoy year-round activities such as hiking, skiing and biking.

The city also boasts a vibrant arts and culture scene, craft breweries, and a strong economy, especially in technology and healthcare.

Virginia Beach, Virginia 25.9 percent of listings have experienced a price drop in the past year. The average price for this beachside city is now $649,000.

While still pricey, snake prices have moderated somewhat, creating more affordability and opportunity for potential buyers looking to live on the coast.

The city offers an attractive mix of coastal living and suburban comfort, making it a popular destination for outdoor enthusiasts.

With its beautiful beaches, promenade and abundant parks, it is ideal for those looking for an active lifestyle.

The city also has a strong economy, supported by military bases, tourism and health care with a family-friendly atmosphere, good schools and safe neighborhoods, making it a great place to raise children.

Washington, DC rounds out the top five with 25.9 percent of offers with a price reduction. The average home price in the nation’s capital is currently $599,948.

While home prices may be higher due to its popularity, recent market shifts have led to more competitive prices, making it increasingly attractive to buyers seeking both career growth and cultural experiences.

The political center of the rural town offers career opportunities in government, law, international relations and many sectors related to policy and advocacy.

The diverse neighborhoods, world-class museums and historic monuments contribute to the vibrant city life.

DC also has a strong public transportation system, making it easy to navigate with locals who have access to beautiful parks like Rock Creek and the National Mall.