Map Shows the 10 US Cities With the Biggest Home Price Drops

Key Points:

• Home prices are declining in 36 of the 50 largest U.S. metro areas, marking the 10th straight month of nationwide price-per-square-foot drops, with a national decrease of 1.8% year-over-year in August, according to Realtor.com® data.
• Former pandemic "boomtowns" like Austin, Tampa, and San Antonio are leading the declines, with Austin experiencing the steepest drop at 8.1%, as these markets cool off from unsustainable price spikes and see increased inventory compared to pre-pandemic levels.
• Elevated mortgage rates, currently averaging 6.71% for a 30-year fixed loan, are limiting buyer affordability despite falling prices, prompting sellers to lower asking prices and creating more negotiating power for buyers in some markets.
• Not all markets are experiencing declines; cities such as Providence, Indianapolis, and Chicago saw year-over-year price-per-square-foot gains in August, indicating a mixed market influenced by regional factors and inventory levels.
• Despite rising mortgage rates, former President Donald Trump has publicly urged the Federal Reserve to lower interest rates, linking lower rates to stronger U.S. credit and threatening trade actions if rates are not reduced.