9 Southern Cities Where Home Prices are Plummeting

Between high mortgage rates, soaring home prices and low inventory, homeownership continues to be just out of reach for many prospective homebuyers. But last quarter, some Southern cities saw sale prices drop as buyers backed out and supply finally caught up with demand.

According to the National Association of Realtors (NAR), 93% of metro markets had home price gains in the first quarter of 2024. The national median sale price for single-family homes grew 5% from a year ago to $389,400. But there were also declines in 15 of those markets and nine of those were in the South. It’s surprising to see cities in Florida and Texas on the list, as these areas were previously known to be some of the most in-demand housing markets.

Business Insider noted that buyers in these regions may be getting priced out of the market. Inventory has caught up to demand in some areas, leading to homes sitting on the market for longer, price cuts and slowing price growth.

For instance, Redfin found that Cape Coral in Florida saw a 51% increase in homes for sale last quarter, Insider reported. It also had one of the highest rates of seller price cuts and a 31-day increase in the time it takes to sell a typical home.

Business Insider listed cities across the U.S. where home prices are down, according to data from NAR. Here are nine Southern cities where prices are down.

• Year-over-year price change: -4.6%
• Median home price in Q1 2024: $305,800
• Median home price in Q1 2023: $320,500
• Annual income needed with a 20% down payment: $77,516

• Year-over-year price change: -4.4%
• Median home price in Q1 2024: $415,000
• Median home price in Q1 2023: $434,000
• Annual income needed with a 20% down payment: $105,197

• Year-over-year price change: -3.8%
• Median home price in Q1 2024: $351,000
• Median home price in Q1 2023: $365,000
• Annual income needed with a 20% down payment: $88,974

• Year-over-year price change: -1.1%
• Median home price in Q1 2024: $260,000
• Median home price in Q1 2023: $262,900
• Annual income needed with a 20% down payment: $65,907

• Year-over-year price change: -0.9%
• Median home price in Q1 2024: $213,600
• Median home price in Q1 2023: $215,600
• Annual income needed with a 20% down payment: $54,145

• Year-over-year price change: -0.6%
• Median home price in Q1 2024: $366,100
• Median home price in Q1 2023: $368,400
• Annual income needed with a 20% down payment: $92,802

• Year-over-year price change: -0.3%
• Median home price in Q1 2024: $466,700
• Median home price in Q1 2023: $467,900
• Annual income needed with a 20% down payment: $118,302

• Year-over-year price change: -0.2%
• Median home price in Q1 2024: $399,000
• Median home price in Q1 2023: $400,000
• Annual income needed with a 20% down payment: $101,141

• Year-over-year price change: -0.1%
• Median home price in Q1 2024: $202,800
• Median home price in Q1 2023: $203,000
• Annual income needed with a 20% down payment: $51,407