First-Time Home Buyers See Third Quarter Prices, Rise in Inventories | Immovable

Prices drop very slightly

In the largest metropolitan areas, prices fell by a hair (1%) from the second to third quarters on average. This slight drop is a sign that skyrocketing price growth is slowing, although many potential buyers haven’t felt the change. Some subways, however, experienced price drops that were probably noticeable.

Prices fell double-digit from last quarter in three subways analyzed: Pittsburgh (down 12%), Cincinnati (down 10%) and Milwaukee (down 10%), and relative to the last year the declines were even greater. Prices fell double-digit, year-over-year, on 10 subways, including a 21% drop in Milwaukee.

It’s important to note that prices have been insanely high for over a year now, so even these double-digit declines only offset a small portion of the extreme increases.

Not all regions have experienced the same relief. Markets with warmer climates, such as Las Vegas; Tampa, Florida; and Austin, Texas; all experienced price increases from last quarter and around the same time last year. In fact, home prices were up another 29% year-over-year in Austin, one of the fastest growing markets in the country.

First-time buyer support: Knowing what’s going on in your local market – not the national headlines – is key to setting your expectations when you start shopping for a home. As prices have risen and supply has fallen across the country, on average, your city or neighborhood can be one of many exceptions. Or, at least, a place where these binding extremes aren’t so severe. Talk to local real estate agents about what they see in the areas you are considering. Find out specifically about homes for sale in your price range – how long they stay on the market and how many offers they receive, on average.

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