{"id":169511,"date":"2024-03-20T13:46:35","date_gmt":"2024-03-20T19:46:35","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=169511"},"modified":"2024-03-20T13:46:38","modified_gmt":"2024-03-20T19:46:38","slug":"housing-markets-with-declining-prices-march-2024","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/housing-markets-with-declining-prices-march-2024","title":{"rendered":"Home Prices Are Falling in These 10 Markets\u2014Are They Ripe for Investing?"},"content":{"rendered":"\n

Is this the sign we\u2019ve all been waiting for? After two years of elevated interest rates and inflated prices, <\/span>new data from Realtor.com<\/span><\/a> shows that house prices have begun to fall in certain cities across the U.S.<\/span><\/p>\n\n\n\n

But hold on to your checkbooks. Let\u2019s look closer to see if these cities are worth investing in now or if this is the start of a deeper price decline. <\/span><\/p>\n\n\n\n

Part of the reason for the price cuts is a slight easing of inventory, with more affordably priced homes coming on the market, pushing other listings down. <\/span><\/p>\n\n\n\n

These are the 10 cities that Realtor.com has pinpointed for the greatest declines in price:<\/span><\/p>\n\n\n\n

Market<\/th>February Median List Price<\/strong><\/th>Median List Price YoY Change<\/strong><\/th><\/tr><\/thead>
1. Miami, FL<\/td>$550,000<\/td>-8.2%<\/td><\/tr>
2. Oklahoma City, OK<\/td>$323,000<\/td>-7.4%<\/td><\/tr>
3. Cincinnati, OH<\/td>$337,000<\/td>-6.4%<\/td><\/tr>
4. \u00a0 Kansas City, MO<\/td>$421,000<\/td>-4.9%<\/td><\/tr>
5.  Denver, CO<\/td>$610,000<\/td>-3.6%<\/td><\/tr>
6.  San Jose, CA<\/td>$1,367,000<\/td>-2.3%<\/td><\/tr>
7.  Raleigh, NC<\/td>$440,000<\/td>-2.2%<\/td><\/tr>
8.  San Antonio, TX<\/td>$335,000<\/td>-1.5%<\/td><\/tr>
9.  San Francisco, CA<\/td>$989,000<\/td>-1.3%<\/td><\/tr>
10. Portland OR<\/td>$600,000<\/td>-1.2%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Why Has Miami Lost Its Shine?<\/span><\/h2>\n\n\n\n

These figures pose some interesting scenarios for real estate investors. <\/span>Miami<\/span><\/a>\u2019s influx of transplants that flooded the city during the COVID-19 pandemic caused house prices to spike by 56% in just over two years. Miami metro prices peaked at a lofty $625,000 in June before inevitably coming down.<\/span><\/p>\n\n\n\n

According to the Florida Department of Highway Safety and Motor Vehicles<\/span><\/a>, 127,000 New Yorkers moved to Florida in 2021 and 2022, causing its population to jump 1.9%. Millennials were the most common demographic moving to the Sunshine State. A <\/span>Redfin survey<\/span><\/a> showed that Florida was the place where Americans wanted to move to most. <\/span><\/p>\n\n\n\n

Another reason for the decline is the <\/span>sheer number of condos<\/span><\/a>\u20144,200\u2014 that builders have announced they\u2019re adding to the greater Downtown Miami market since 2021. However, capitalizing on Miami\u2019s popularity is not easy for investors. Miami Beach has <\/span>convoluted rules<\/span><\/a> regarding short-term rentals, where the tourist season lasts all year, and investors can make the most money. <\/span>Soaring home insurance rates<\/span><\/a> in the wake of the uptick in natural disasters and the <\/span>2021 Surfside condo collapse<\/span><\/a> are also a hindrance to cash flow in Miami.<\/span><\/p>\n\n\n\n

The Midwest Could Be Where the Smart Money Is<\/span><\/h2>\n\n\n\n

Price drops in the Midwest\u2014again, the result of cheaper houses coming on the market\u2014could be the sweet spot for investors for several reasons:<\/span><\/p>\n\n\n\n