By Daily Mail (U.S.) | Created at 2024-10-22 05:20:39 | Updated at 2024-10-22 07:40:38
2 hours ago
Future homeowners looking to live in the western part of the U.S. should put Phoenix, Arizona at the top of their list.
While the city stays hot thanks to desert heat, house prices are finally cooling, with 25 percent of property listings in the city seeing price reductions.
The shift signals a more favorable market for buyers as prices begin to fall after years of rapid growth.
The news will be welcome to cash-strapped first time buyers and others priced out by higher mortgage costs.
Last month, the Federal Reserve's cut interest rates bringing mortgage rates down to 6.2% - the lowest since September 2023.
Future homeowners looking to live in the western part of the U.S. should think about putting Phoenix, Arizona at the top of their list
While the city stays hot thanks to desert heart, house prices are cooling, with 25 percent of property listings in the city seeing price reductions
With a significant portion of homes also being discounted, buyers may now be able to find more affordable options within their reach.
Experts suggest the trend could create opportunities for first-time buyers and those looking to move on up.
'The percentage of homes with price reductions increased from 17.7% in September of last year to 18.6% this year,' said economist Ralph McLaughlin to Realtor.com.
'What's more, the overall share of inventory with price cuts is 1.0 percentage points higher than the shares seen between September 2017 to September 2019.'
It's a case of supply and demand that is contributing to the recent price drops.
With lower interest rates, both buyers and sellers have now entered the market, with those already selling lowering their prices in order to stay competitive against the influx of new listings.
In September, the U.S. housing market saw a 34 percent increase in the number of available homes compared to the same time last year. The number of unsold properties also rose by 22.9 percent.
The amount of new listings has also grown 11.9 percent year on year meaning there are now more choices for buyers and essentially pressuring sellers to reduce their prices if they are to stand out.
'Price cuts signal that homes aren't selling as quickly as expected, prompting sellers to lower prices to attract more interest,' said McLaughlin.
It's a case of supply and demand that is contributing to the recent price drops. With lower interest rates, both buyers and sellers have now entered the market, with those already selling lowering their prices in order to stay competitive against the influx of new listings
Phoenix, Arizona has seen 25 percent of its listings undergo price drops with the median house price now $532,000.
Although housing prices have risen recently, they remain relatively affordable compared to other major cities in the U.S., offering a variety of options from affordable condos to spacious single-family homes.
Aside from the affordable housing, the city attracts people with its year-round sunny weather, affordable housing, and growing job market.
The city's lower cost of living compared to other major cities also makes it appealing for families and professionals.
Outdoor lovers enjoy being close to desert landscapes for recreation while the local economy is thriving, particularly in sectors like tech and healthcare.
Although housing prices have risen in Phoenix, Arizona recently to a median of $532,000, they remain relatively affordable compared to other major cities in the U.S.
Austin, Texas is next on the list, again with 25 percent of property listings having their asking prices cut. The median house price is $556,000.
Although housing prices have increased in recent years due to high demand, the city still offers a range of options, from apartments to single-family homes, appealing to a variety of budgets.
Austin appeals to many for its thriving tech industry with job opportunities, especially in startups and more established companies.
The city offers a vibrant cultural scene and is known for its live music, festivals, and diverse restaurant options.
Outdoor enthusiasts enjoy its parks, lakes, and hiking trails.
Austin also boasts a relatively lower cost of living compared to other tech hubs like Silicon Valley.
Its unique blend of urban life with a laid-back, creative vibe makes it a popular destination for both young professionals and families.
At a median price of $556,000, buyers in Austin have the opportunity to live in sprawling homes and enjoy warm climate and mild winters all year long
Denver, Colorado has seen 25.2 percent of listings fall with the media price now $649,000.
While home prices have traditionally been high, recent market trends show homes are being priced more competitively providing potential buyers with better opportunities in this growing city.
Residents enjoy stunning natural surroundings and a thriving outdoor lifestyle.
With the Rocky Mountains just a short drive away, people can enjoy activities like hiking, skiing, and biking year-round.
The city also boasts a vibrant arts and culture scene, craft breweries, and a strong economy, particularly in tech and healthcare.
Combined with a median list price of $649,000 Denver, Colorado is one of the best options for those looking to live in a scenic area with multiple outdoor activity options.
Virginia Beach, Virginia has had 25.9 percent of listings undergo a price drop in the last year. The median price for this beachside city is now at $649,000.
Although still pricey, hose prices have seen some moderation, creating more affordability and opportunities for potential buyers looking to live by the coast.
The city offers an attractive mix of coastal living and suburban comforts, making it a popular destination for those who love the outdoors.
With its beautiful beaches, boardwalk, and plentiful parks, it's ideal for those seeking an active lifestyle.
The city also has a strong economy supported by military bases, tourism, and healthcare with a family-friendly atmosphere, good schools, and safe neighborhoods making it a great place to raise children.
Virginia Beach, Virginia has had 25.9 percent of listings undergo a price drop in the last year. The median price for this beachside city is now at $649,000
Washington, D.C. rounds out the top five with 25.9 percent of listings having a price cut. The median house price in the nation's capital is currently $599,948
Washington, D.C. rounds out the top five with 25.9 percent of listings having a price cut. The median house price in the nation's capital is currently $599,948.
While housing prices can be higher due to its popularity, recent market shifts have seen more competitive pricing, making it increasingly appealing for buyers seeking both career growth and cultural experiences.
The political hub of the country city offers career opportunities in government, law, international relations, and numerous industries tied to policy and advocacy.
Its diverse neighborhoods, world-class museums, and historic monuments add to the vibrant city life.
D.C. also has a strong public transportation system, making it convenient to navigate with locals enjoying access to beautiful parks like Rock Creek and the National Mall.
