The three major US cities where median home prices fell the most in July

Average home prices in the US finally fell last month, according to a new report.

Of the 50 largest metropolitan areas, 47 saw a decline compared to the same period last year – with three in particular showing the wayRealtor.com reported.

In the cities of Florida, North Carolina and Phoenix, home prices have fallen by as much as $100,000.

These declines contrast with price increases during the pandemic, when mass migration disrupted urban housing markets.

Data shows that markets in several of these centres are now cooling, with experts blaming this in part on high mortgage rates.

The largest declines in home prices were observed in Tampa, Charlotte and Phoenix.

“Rates continue to be higher than expected, which means less buyer activity,” said Ralph McLaughlin, senior economist at Realtor.com.

Second, the prospect of lower mortgage rates this fall may have caused some buyers to hold off.

‘This combination has led to sellers lowering their prices to attract more buyers.’

As for the locations where this phenomenon is being felt most, McLaughlin said: “These are places where sellers have done well over the last few years with rising prices, but now that the effects of higher rates are fully felt, sellers need to get their feet back on the ground in terms of their price expectations,” he said.

The Federal Reserve indicated a rate cut is coming in September as inflation continues to cool.

In the meantime, sellers will suffer as mortgage rates remain high, according to experts interviewed by Realtor.com. Potential buyers, on the other hand, will reap the rewards.

This is already being seen in places like Tampa, where a five-bedroom, three-bathroom home that was priced at $664,000 in February has now been reduced by $119,000.

In Tampa, a five-bedroom, three-bathroom home listed for $664,000 in February is now on the market for $545,000

The home’s price was reduced seven times, including once by as much as $33,000 on July 31.

According to Realtor.com, the 2,500-square-foot home is now listed for $545,000.

According to the report, the Gulf Coast city’s overall price fell 9.7 percent, meaning a home that cost half a million dollars a year ago now costs about $450,000.

The second-largest price drop was recorded in Charlotte, where a three-bedroom, 2.5-bathroom home originally listed for $339,990 on July 23 is now listed for $324,900.

Realtor.com recorded a 9.5 percent drop in prices in the city compared to the same period last year.

In Charlotte, Realtor.com recorded a 9.5 percent price decrease compared to the same period last year

In Charlotte, a three-bedroom, 2.5-bathroom home originally listed for $339,990 on July 23 has already dropped to $324,900

Phoenix, which has one of the fastest-growing populations of any U.S. city, saw its average home price drop 9.4 percent from last year, Realtor.com found.

A three-bedroom, two-bathroom home that was listed for $520,000 earlier this year is now on the market for $495,000 after four price cutsthe last of which was released on July 19.

Mortgage rates skyrocketed in just a 16-month period in 2022 and 2023, the result of an aggressive campaign by the Fed to tackle what was already skyrocketing inflation.

During that period, the bank approved 11 hikes, the fastest pace of tightening in decades.

Phoenix, which has one of the fastest-growing populations of any U.S. city, recorded a 9.4 percent drop in median home prices from last year, Realtor.com found

A three-bedroom, two-bathroom home that was listed for $520,000 earlier this year is now on the market for $495,000 after four price cuts, the last of which was on July 19.

Experts say the rate hikes have created a “golden handcuff effect” on the housing market, making sellers locked into lower rates reluctant to sell their homes.

That’s created limited supply and fewer options for buyers, though Realtor.com notes that even a small change in rates can dramatically alter the average price.

Federal Reserve Chairman Jerome Powell predicted on Wednesday that interest rates could be cut as early as September.