Top 10 Cities With Biggest Price Drops vs. Boston
Top 10 Cities with Largest Price Drops (And How Boston Compares)
In this video we are going to be talking about the top 10 cities in the U.S that has had the largest housing price drops then compare them to the city of Boston.
Hi, my name is Jeff Chubb and I am a recovering investment banker turned real estate agent that has sold more then a 1,000 houses and am one of the agents in the state of Massachusetts. If you have questions about the market, then throw them in the comment section below.
Quick note. This data comes from Zillow and is calculated off of the peak median sale price in 2022 versus the median sale price for December. How accurate you ask? Well it’s all about how you want to read the data. Take a look at this chart of the average sales price in Massachusetts. You will see that they hit peak pricing in June and then hit their low point in October then was up slightly in November and December. That means from peak to trough, home prices went down by 10%.... Oops, did I mention that is for 2021 when no one was talking about home price crashes. Here is the graph that shows the 2022 vs 2021 averages. This is what we would call a trend…
So here are the top 10 cities with the largest price drops… And then how it compares to the city of Boston. Take the data with a grain of salt! We will be going from bad to worst!
Number 10 is Evansville, Indiana. Homeowners in Evansville have seen prices drop by 10.2%. The median price was $181,450 in June and would fall to $162,967 in December.
Number 9 is Minneapolis, Minnesota with an 10.3% housing price drop. The median sales price in June was $326,967 and would fall to $293,333 in December of 2022.
Number 8 is Salt Lake City, Utah with a 11.1% drop in housing prices. The median sale price was $614,997 in June, but they wouldn’t peak out until August with the median sale price of $633,967. In December they would hit a median sale price of $546,667.
Real quick, I have to say this makes sense. Well off folks come out to buy expensive ski homes and want them closed by August so that way they can get them ready for the ski season. Just pointing that out to again say… Grain of Salt folks!
Number 7 is Kansas City, Missouri with housing prices falling by 11.4%. In June, the median home prices were $229,467. Kansas City wouldn’t hit their peak until July when they hit $230,833. They would then hit their low point in December with a median sale price of $203,333.
Number 6 is Peoria, Arizona which saw home prices fall by 11.6%. In June their median sale price was $562,500. In July they would see a final month of appreciation topping out to $565,500. Prices would then drop until December when they hit a median sales price of $497,133.
By the way, if you are liking this video… Then would you mind helping me out with the Youtube Gods and hitting that like button?
Number 5 on the list is Spokane, Washington. They saw home prices fall by 11.69% from June to December. In June the median sales price was $430,283 with December’s median sales price at $379,967.
Number 4 is Reno, Nevada with housing prices down by 12%. The median sales price in June was $626,650 with prices falling in December to $551,667.
Number 3 is Dallas, Texas. I personally was pretty surprised by this one. Dallas saw the median sales price fall by 12.1. In June their median sales price was $446,317. They would see one more month of appreciation to hit $453,317 in July. Then from July to December, prices would drop until they reached their low of $392,300.
The number 2 city with the biggest home price correction was Yonkers, New York with a 15.86% drop in prices. The median sales price in June was $604,967 compared to the median sales price in December of $508,992.
Quick note, the real #2 was Cape Coral, Florida. But we shuffled their way off the list due to the hurricane from this year wreaking havoc on the people’s lives down there… As well as their real estate and the subsequent market.
This leads us to the #1 housing market that has had the biggest… Dare I say it… Crash in prices. That would be Syracuse, New York that has seen home prices fall by 20.1%. The median sales price in June was $146,600. They would then sneak out a little bit more appreciation hitting the median price of $148,283 in August. In December, home prices would fall to a median sales price of $117,117.
So where does Boston compare to these other cities? The median sales price was $795,262 in June with it peaking out in July at $795,667. In December the median sales price was $807,967 for a pricing decrease of 1.6%.
That is Zillow’s data. I used our MLS data and found a little bit of a different story, however. In January of 2022, the median sales price in Boston was $680,000. Remember that number… Because I believe that is important. The peak for pricing in Boston would actually be April when the median sales price hit $775,000. Then we had some ups and downs, but starting in August we really started to see a strong downward trend. In August, the median sales price would hit $729,900. We would end the year in December with the median sales price of $680,000.
Talk about a roller coaster of a year! But I went back to see what it looks like in other years. Started with 2021 and then 2020… But Covid wreaked havoc on Boston Homes For Sale. In 2020 people fled the city for the suburbs as everything shut down. It was like that until the first quarter or so of 2021, then 2021 was really all about cleaning up the Covid mess. So, 2019 was our last normal year. Comparing the 2019 trend to 2022 and it seems like the increase happens in the Spring and then would level out in the Summer and Fall with some ups and downs. But the trendline is level. Compared to 2022… There is no doubt that the trendline was down.
So, Zillow has us being down by 1.6% from “peak” or June data to “trough” in December. That really is a Bull crap timeline comparison. From our MLS data, the median sales price was $700,000 in 2021 versus the median sales price in 2022 of $735,000. That would tell us that prices were up by 5% which is a load of you know what because it is taking the median of the entire year. Not a true glimpse of today’s market. That was a rough Fall market. Remember that $680,000 number and how we started the year with that being the median price and then ended the year with that being the median price… I think that 0% appreciation or depreciation is a much better representation of the market and how 2022 really ended.
Data… You can skin it anyway you want.
I hope you found some value in this video and if you did… Then I appreciate you considering subscribing. Whether you are moving in 9 days or 90, be sure to give me a call or shoot me an email. All of my contact information is in the description below. I would love to meet you and get to know you a bit better and talk more about your goals. I can personally help you if you are looking to move in the Greater Boston market, but can also help you find a capable agent that actually knows what they are doing and talking about all over the country.
Let me know if you have any questions and if this all interested you, then you may want to take a look at our video on our 2023 Real Estate Market Predictions!