25 US Cities With Biggest Q3 Home Price Plunges

Want a bargain on a house? Try snapping something up in on of these 25 US cities that saw the greatest plunges in their home prices in the 3rd quarter:

25. New Haven-Milford, CT -13.1%
24. New York-Wayne-White Plains, NY-NJ -13.9%
23. New York-Northern New Jersey-Long Island, NY-NJ-PA -14.1%
22. Atlanta-Sandy Springs-Marietta, GA -14.5%
21. NY: Newark-Union, NJ-PA -14.8%
20. Trenton-Ewing, NJ -15.0%
19. Bridgeport-Stamford-Norwalk, CT -15.6%
18. Lansing-E.Lansing, MI -15.6%
17. Chicago-Naperville-Joliet, IL -16.2%
16. Hagerstown-Martinsburg, MD-WV -16.3%
15. Jacksonville, FL -17.0%
14. Boise City-Nampa, ID -17.4%
13. Kingston, NY -18.4%
12. Tampa-St.Petersburg-Clearwater, FL -20.8%
11. Deltona-Daytona Beach-Ormond Beach, FL -21.9%
10. Sarasota-Bradenton-Venice, FL -22.0%
9. Phoenix-Mesa-Scottsdale, AZ -22.9%
8. Ocala, FL -24.0%
7. Reno-Sparks, NV -24.1%
6. Miami-Fort Lauderdale-Miami Beach, FL -24.6%
5. Palm Bay-Melbourne-Titusville, FL -24.6%
4. Orlando, FL -26.0%
3. Riverside-San Bernardino-Ontario, CA -26.0%
2. Las Vegas-Paradise, NV -34.5%
1. Cape Coral-Fort Myers, FL -40.0%

Source: National Association of Realtors

The NAR announced in their 3rd quarter report, “To be sure the numbers are mixed and some areas are experiencing reversals, but over all we are beginning to pull ourselves up out of this slump. As long as we continue to see a Fed willing to support the markets until they are strong enough to stand on their own, we should be able top avoid a double dip,”

Seems that if you have the cash, now is a good time to buy, especially with the homebuyer tax credit getting extended and expanded. The question is, how much of a threat is any further depreciation? You don’t want to end up underwater or nothin’.

Current Report: Single-family 3rd Quarter 2009 (PDF) [National Association Of Realtors]
NAR Report Third Quarter [Your Property Path News Brief]
(Illustration: p0na)

Comments

Edit Your Comment

  1. xenth says:

    It’ll be a good time to buy when the tax credit goes away. If the seller knows you’re getting a bonus if you buy by a certain date, they’re going to ask more.

    Wait until the stupid bonuses and credits are gone and then go shopping. I can get a better deal on a car now than I would’ve during cash for clunkers because the moment that thing was announced prices shot up.

    • VeritasNoir says:

      @xenth: sellers are just as impatient as buyers (because, in most cases, they are buyers themselves).

      Use the tax credit. Take the incentives. If you can afford it, now does not seem like a bad time for a home purchase.

    • portishead69 says:

      @xenth: I don’t agree. I think everything is totally dependent on the specific market. Especially if you are looking at foreclosures or short sales… banks are not increasing the prices due to the tax credit. Most sellers just want out quickly. This is a perfect time to buy.

      • theyoungandthebetrayed says:

        @portishead69: Banks may not be increasing the prices due to the tax credit, but you better believe that the offers accepted are well above asking price.

    • mbgrabbe says:

      @xenth: I bought a house a few months ago, and I remember thinking about this exact point you’re bringing up. There’s no question that the tax credit is inflating the price of homes right now. It’s creating a lot of artificial demand.

      Sure, the impact is probably negligible on foreclosed/shortsale homes, but when a realtor is pricing out a home, there’s no question that he factors in the $8k the buyer will get. It’s a good selling point and a good reason to bump up the asking price.

      I really wonder how much I could have bought my house for if this tax credit didn’t exist. My guess is that I could have probably saved at least $10k on the mortgage.

  2. DoctorMD says:

    The UK had 2 false housing bottoms. The price drop slowed and then started again. Just as likely normal variation.

  3. Mr.Duke says:

    The trend will continue downward. …

  4. dorianh49 says:

    I have a feeling that home prices in many U.S cities are being kept artificially high right now (sound familiar?) because banks are holding on to foreclosures, not releasing them for sale. Because of this, supplies are artificially short. Demand is high, because you’ll see a home listed on the MLS for a nice amount, but then you find out that 35 people are bidding on it and the price is now actually 20-30% higher.

    Once these foreclosures are let loose, you’re going to see prices start to plummet again.

    • JiminyChristmas says:

      @dorianh49: Based on my own anecdotal observations, I’m inclined to agree. I live in a neighborhood with a pretty substantial number of foreclosed houses. There are several properties nearby that have been vacant for 9-12 months and I’ve seen little to no effort to market them.

      The whole thing is such a cluster$%^#. Why kick people out of the houses so the properties can sit empty and rot for a year? At least when people lived there the snow got shoveled and the grass was mowed more than once every couple of months.

    • j-o-h-n says:

      @dorianh49: This is why they are holding on to them, they don’t want to see their investments drop like a rock any more than anyone else does — if they are able they will likely let them out in a long trickle to keep that from happening.

  5. SG-Cleve says:

    Don’t forget that when your home value goes down your property taxes go down too.

    So if you’re not planning to sell your house anytime soon the lower values actually put more money into your pocket.

  6. Incredulous1 says:

    This makes me sad. I never intended on buying my house to make a profit.
    My little 1 bath 2 bedroom starter house will also be my ending house. With 20 years left on my mortgage and the value now 70,000 less then I owe I will never “move on up” Oh well, hopefully I will be lucky enough to be in my house to the end…

    Hopefully though, my kids (teenagers) will be able to afford a house easier then I did if the prices stay so low.

  7. Trai_Dep says:

    I’m floored that CA only placed once in the list.

    • nnj says:

      That is because this report is from the Q3 of 2009. CA house prices have already dropped significantly. Most of the damage is done there already, and probably will continue to decline. If this report was in, say Q3 2007 or Q# 2008, CA would probably dominate the list.

  8. kylere says:

    The only reason Flint Michigan did not win is that houses there have already lost 90% of their value from 2002.

  9. pop top says:

    Go Lansing/East Lansing! If only crime rates weren’t going up like crazy and there was something to do here besides drink, I might actually buy a house…

  10. amberlink says:

    That list is incredibly confusing:

    How can you have:

    24. New York-Wayne-White Plains, NY-NJ -13.9%
    23. New York-Northern New Jersey-Long Island, NY-NJ-PA -14.1%

    Those aren’t “cities” those are areas of NY AND NJ, that’s not one city, but several.

    • plim says:

      @amberlink: agreed. and same thing with:
      21. NY: Newark-Union, NJ-PA -14.8%
      20. Trenton-Ewing, NJ -15.0%

      how can you go from newark all the way through pennsylvania, but not include philly, camden, and have trenton/ewing as separate?

      what’s really weird about ny/wayne/white plains is that wayne is in passiac county. you have to go through northern nj (bergen county) to get to wayne. unless the district is a horseshoe that goes through rockland county (ny) and dips down to passiac.

  11. KZulu says:

    The report is for the MSA not specific cities. The MSA is Metropolitan Statistical Area. To see what areas are included in this go to [www.census.gov] and it will show you a breakdown of the counties and cities included in each MSA listed.

  12. chucko6166 says:

    I’m a victim of the price erosion taking place in Phoenix. My house is worth 35% less than it was when I purchased it 1 year ago. I thought the worst was over then, and boy was I wrong. I think that anyone who buys right now in any of these troubled markets is just asking for trouble. Right now in the Phoenix area houses are selling at the rate of about 8000-9000 units per month. The biggest problem is that right now the foreclosures in this market are – SURPRISE!! – around 8000-9000 units per month.

    There will be no recovery in prices until the number of units selling is greater than the number of foreclosures. In Phoenix right now the market is still headed down sharply, with no real end in sight.

    Buyer Beware!

  13. ElizabethD says:

    It’s hard to believe no city in Rhode Island is on this list.

  14. mikull says:

    As mentioned above, but in:
    NY: Newark-Union, NJ-PA

    Newark and Union are in NJ – not NY… none of which are in NJ. Clearly the National Association of Realtors report details statistics any consumer should be skeptical about.

  15. zzxx says:

    In addition to banks holding onto foreclosures, they are not foreclosing!!!!!!!!

    I am underwater(owe 640K on a house that cost me 1100K which cannot be sold for 650K) and cannot make my loan payments.

    If they foreclose they will have to maintain the property and it might go into disrepair. If they leave me be I will maintain the place and they can take it when they are ready. BTW, I have 9 missed loan payments.

  16. TreyWaters says:

    Could someone explain to me the sob stories about not being able to “move on up” with lower home prices? I never did understand that…

    Let’s say that home prices have dropped 20% in your area, and you were looking to move into a bigger house. For simple-math’s sake, let’s say (in better times) your house was worth $100k and the house you want was worth $200k.

    Sure, your current house has dropped $20k in value, but the house you want has dropped $40k in value. This should make things EASIER as your net difference is $20k LESS than when values were higher! Sure, in this market, it may take a little longer to sell than if we were in a seller’s market, but the house you want is more affordable!

    It seems to me that HIGHER home values are what the majority of people should be concerned about.

    This brings up another point…in this market, you would think sellers would be doing ANYTHING to make their home more attractive, especially when they are trying to hold to values from 2-3 years ago. When I sold my house earlier this year, I had new flooring throughout most of the house, fresh paint, and most of the appliances were only a few years old, along with other improvements.

    However, when my wife and I went looking at houses to buy, even houses that were only a few years old had scuffed walls, worn and stained carpet, and builder-grade appliances and fixtures. And they were asking top dollar! Most people did absolutely nothing (or at least very little) to make their houses stand out.

    On the flip side, most of these homes were on the market for months (some still on the market), and mine sold, going under contract after less than 1 week on the market. Oh, and I got asking price.

  17. chucko6166 says:

    It appears that I’m not alone in Phoenix. According to this, 63 % of the mortgages in Phoenix are underwater (worth less than what is owed).

    [www.cnbc.com]

    Here is the complete slideshow if anyone is interested.

    [www.cnbc.com]

  18. RandomHookup says:

    @Paladin_11: If you break even on a house, that’s the best investment you can ask for.

  19. Mecharine says:

    @Paladin_11: I always had trouble with the idea of considering your home as an investment. Most investments fall through (due to inexperience for the most part). Is it really a good idea to make your home such a big liability?

  20. FatLynn says:

    @Paladin_11: Tax breaks also play a huge part in the decision to buy vs. rent. If you @Incredulous1: You are ten years into your mortgage and 70K under water? How much was your house to begin with?

  21. SGriswold says:

    70 @ohenry:

    70 grand? For a house that isn’t condemned from being used as a meth lab / crime scene / filled with spiders?

    I want to go to there.

    Wife and I are house shopping. In LA, if you want a house that is A) not a gang warfare zone and B) not currently on fire, you’re looking at $500K, easy. Oh, you want neighbors that don’t take dumps on your porch? You have to move to a nicer area. $750K please. Ugh.

  22. catastrophegirl chooses not to fly says:

    @ohenry: my mortgage is lower than my last rent [which was on a smaller house] and i got 100% financing for a first home buyers plan through my credit union. if you are not yet a member of a credit union but have the opportunity to join one, it might be worth checking out their mortgage options and see if it’s worth it for you.

  23. Antiks says:

    @Ratty: Why anyone would want to live in Reno is beyond me. That place is a cesspool.

  24. technologiq says:

    @Antiks:

    Have you ever been to the area? This is the typical response for someone thats either never visited or visited their relatives somewhere in some awful suburb in the valleys.

    Even in this craptacular economy and the fact that Reno-Sparks is #8 on that list – you’re still seeing several Million plus dollar homes selling and the market is picking up here.

    Lets see – 25 minutes from Lake Tahoe and no more than about an hour or two from 20+ Ski resorts. Plenty of entertainment, shopping, etc. Good schools, I wouldn’t want to raise my kids anywhere else.

    I’m so sick of hearing a ‘Reno is XYZ’ comment with nothing of value to back up as to why you think so.

  25. sonneillon says:

    @pecan 3.14159265: Well I work in both Arlington and Woodbridge. I would like to split the difference with Springfield that would be perfect, but as you know the closer to the beltway you get the more things cost.

  26. Pickled_Herring says:

    @LadySiren: which area of NC? DH and I are both in tech and love NC…

  27. LadySiren is murdering her kids with HFCS and processed cheese says:

    @Pickled_Herring: I’m smackdab between two of the larger metro areas – the Triangle and the Triad. The Triangle has more tech stuff than the Triad does, but both have decent opportunities.

  28. webweazel says:

    @LadySiren: We visited Raleigh/Durham a few times and we really like it there. Loved a little town nearby, Cary. Slightly south, if I remember.

  29. colorisnteverything says:

    @FatLynn:

    Absolutely and completely. Gold Coast is a far cry from Wrigleyville or the Loop. LOL.

    I am from the Region – IE Northern Indiana, but every bus that comes from my university to Chicago (where my parents would pick me up, more convenient than driving 4 hours) used to go through Joliet and pick up prisoners. Thus, my parents just drove, afraid I would be shivved on the bus.

    If you were from out of the area, well, you might not know better lol.