Mortgage rates have fallen recently, but home prices remain largely unchanged, and whether buyers or sellers have the advantage depends on location.
Freddie Mac reported Thursday that the 30-year fixed-rate mortgage dropped 15 basis points from the previous week, marking the largest weekly decline in a year. Despite the decrease, Realtor.com data show the national median list price for homes at $429,990, roughly flat over the past 12 months.
Among the 50 largest metropolitan areas, seven are currently considered buyer’s markets, 20 are seller’s markets, and 23 are balanced. The largest price reductions are concentrated in the South and West, where homebuilders added substantial inventory during the pandemic to meet demand from buyers leaving more densely populated areas.
Zillow data indicate the highest share of listings with price cuts is in Colorado Springs, Colo., where 38.4% of homes have reduced prices. Other metro areas with significant markdowns include Denver (38.2%), Warrensburg, Mo. (37.9%), New Castle, Ind. (37.5%), Raleigh, N.C. (37.5%), Zanesville, Ohio (37.4%), Pierre, S.D. (37.3%), Bennettsville, S.C. (37.0%), Hastings, Neb. (36.8%), and Dallas, Texas (36.7%).
In contrast, the lowest share of homes with price cuts is concentrated in smaller or more rural markets, including Vernon, Texas (4.8%), Magnolia, Ark. (10.1%), Selma, Ala. (10.37%), Appleton, Wis. (10.46%), Zapata, Texas (11.3%), Cordele, Ga. (11.45%), Beaver Dam, Wis. (11.8%), Watertown, Wis. (12.07%), Oshkosh, Wis. (12.16%), and Eagle Pass, Texas (12.18%).
Housing experts note that in regions like the South and West, excess supply from new construction has contributed to price reductions. In some rural markets, affordability constraints mean sellers do not need to lower prices to attract buyers.
While falling mortgage rates may provide some relief for potential homebuyers, local supply, demand, and affordability continue to drive market conditions across the country.
