Although the housing market has featured soaring prices for the past couple of years, it’s finally showing signs of cooling off. Because of this, there are savings popping up in cities you wouldn’t expect.
To find places where home prices are dropping the most, GOBankingRates used Zillow’s May and August 2022 median sale data prices for the 100 largest metro areas to find the numerical and percent change in median sale prices over those three months. All cities identified have had a -5% or more change in home sale prices, which, sometimes, adds up to more than $100,000.
Here are eight surprising cities where home prices are dropping.
- August 2022 median sale price: $532,667
- 3-month change in sale price ($): -$27,000
- 3-month change in sale price (%): -5.07%
Stockton, California, is located in the state’s Central Valley, about 65 miles east of the San Francisco Bay Area. Home prices are much lower here than other areas of the Golden State.
For example, many of the residential areas in the city are located along waterways but are priced at about one-third of what you’d pay if you tried to buy a home in the Bay Area. Recreational opportunities abound in Stockton, including watersports on the Delta and an Olympic-size ice rink.
- August 2022 median sale price: $489,967
- 3-month change in sale price ($): -$24,900
- 3-month change in sale price (%): -5.08%
If living in the Pacific Northwest sounds like the next great adventure to you, Boise is an affordable city, which is described as part urban and part wild. The downtown area has over 100 bars and restaurants, but the city is also in close proximity to mountains, a river and plenty of hiking trails.
Lower-than-average crime rates, tons of amenities and dropping home prices potentially make this city a homebuyer’s dream.
Greensboro, North Carolina
- August 2022 median sale price: $170,750
- 3-month change in sale price ($): -$8,917
- 3-month change in sale price (%): -5.22%
If you’re looking for a sizable city of around 300,000 in a location that offers plenty of recreational activities but is also within driving distance of both mountains and beaches, you’ll find it in Greensboro. Living here is also affordable with an overall cost of living that’s 10% below the national average.
- August 2022 median sale price: $552,458
- 3-month change in sale price ($): -$30,209
- 3-month change in sale price (%): -5.47%
The capital of Texas has a lot to offer when it comes to educational institutions, recreation, culture, entertainment and jobs. Residents enjoy its lakes, parks and hiking trails, as well as a colorful and eclectic downtown scene.
Although summers can be quite hot and humid, winters are generally mild with no more than a couple of weeks to a month of below-freezing temperatures.
- August 2022 median sale price: $733,533
- 3-month change in sale price ($): -$53,134
- 3-month change in sale price (%): -7.24%
Seattle, a perfect locale for nature enthusiasts, is known as one of the most expensive places to live in the U.S., with a cost that’s a whopping 57% higher than the national average.
However, home prices have recently dropped over 7%, which might signal a good time to enter the homebuying market there if you’re interested.
San Francisco, California
- August 2022 median sale price: $1,254,250
- 3-month change in sale price ($): -$122,583
- 3-month change in sale price (%): -9.77%
From world-class dining and a melting pot of cultures to a thriving social scene that’s in a league of its own, San Francisco is perpetually on the cusp of unique experiences just waiting to unfold. Although buying a home in San Francisco will take some pretty deep pockets, sale prices there have dropped almost 10% as of late.
San Jose, California
- August 2022 median sale price: $1,525,833
- 3-month change in sale price ($): -$150,834
- 3-month change in sale price (%): -9.89%
If living somewhere where you might have a chance to rub elbows with the financial elite is a priority, San Jose is the perfect choice. The city is home to one billionaire per every 727 people and boasts the highest share of super-rich individuals in the world, according to MarketWatch.
San Jose is hard to beat for other reasons, too, including great weather and close proximity to the mountains and the beach. But it’s not cheap to live there, even with the recent decrease in home sale prices of almost 9.9% — amounting to a $150k discount.
Winston-Salem, North Carolina
- August 2022 median sale price: $241,684
- 3-month change in sale price ($): -$16,333
- 3-month change in sale price (%): -10.10%
This city of approximately 250,000 is unique in that it straddles the line between hometown friendliness and international appeal. What’s more is that its previously affordable home prices have recently dropped more than 10%, and it has an overall cost of living that’s lower than many other major metro areas.
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Methodology: For this piece GOBankingRates used Zillow’s August 2022 median sale price data to determine where prices are dropping the most. First GOBankingRates limited the scope to the largest 100 metro areas and from there isolated the August 2022 median sale price for each as well as the May 2022 median sale price. With these two figures isolated GOBankingRates was able to find (1) the numerical change in median sale price over the last three months and (2) the percent change in median sale price over the last three months. Only factor (2) was used in determining rank. All data was collected and is up to date as of November 10, 2022.