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Are you looking to buy a home but want to get the best deal possible? Check out these areas near you that are experiencing falling home prices.
There are a few main reasons home prices may fall in a particular location: increasing inventory, slow economic growth, high property taxes, poor school districts, changing demographics.
Search online real estate databases for areas near your desired location that have seen a drop in median home list prices or sales prices over the last year. You can also ask a local real estate agent.
Starter homes or more affordable properties typically see the largest percentage price drops during a housing downturn. Look for homes priced lower than the area median.
It depends on the market forces but price drops of 5-10% year-over-year are common in areas with declining values. In severe situations, prices could fall 15-20% or more from the peak.
Once home price declines have stabilized, that generally indicates the market has hit bottom. Prices may continue to be low if demand remains weak. Act before values start to rise again.
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