The housing market rarely stays the same. Even if the previous year was the best on record, that doesn’t mean that the next year will follow suit — especially when a recession is looming.
There are financial preparations to do before a recession and that might include housing market research. After all, the housing market can provide a snapshot of the local economy.
The locations and reasons might differ, but every city on this list has one thing in common: Sellers are dropping asking prices.
Located in Southern California near the San Bernardino Mountains, Fontana is a small city in a large state. In the city, the year-over-year change of listings with price drops was 333.1%.
Year over year, median home prices in Fontana are only down 0.23%, so even though sellers have slashed listing prices, the actual sale prices have not decreased by much.
Near the San Francisco Bay in Northern California, Hayward is known as a competitive housing market. From June 2021 to June 2022, the year-over-year change in the percentage of listings with price drops was 347.1%.
However, houses are currently on the market for a median of 30 days, which is nearly double the length of time as the previous year.
McKinney is a suburb of Dallas where the housing market has exploded over the last few years. From June 2021 to June 2022, the year-over-year change in the percentage of listings with price drops was 386.6%.
The median sale price has increased by 7% throughout the last year, but houses are sitting on the market longer, so sellers might be eager to move the process along by lowering a listing price.
Rancho Cucamonga, California
In Rancho Cucamonga, the year-over-year change in the percentage of listings with price drops was 395.8%. The city near San Bernardino is within driving distance of Los Angeles and popular attractions like Disneyland.
Most homes are currently selling for about 2% less than the list price which might explain why sellers are slashing prices.
Located in Los Angeles County, Pomona is about an hour east of the city. In Pomona, the year-over-year change in the percentage of listings with price drops was 402.5%.
With more days on the market, fewer homes sold, and the average sale price down by 5%, Pomona’s housing market seems to be on a similar trajectory with other cities in the state.
Grand Prairie, Texas
Grand Prairie is in the Dallas-Fort Worth area and has experienced a lot of growth over the last few years. The year-over-year change in the percentage of listings with price drops in the city was 411.1%.
Similar to other cities on the list, houses are staying on the market longer, but unlike other cities, the average sale price is actually higher than it was last year.
Located in the suburbs of Dallas, Mesquite is continuing to grow with both new developments and retail locations in the works. The year-over-year change in the percentage of listings with price drops in Mesquite was 468.4%.
The average sale price for a home is higher this year than last year. It might seem counterintuitive, but the number of days on the market is higher, so sellers might slash prices to encourage offers.
Cary, North Carolina
With a 482.4% year-over-year change in the percentage of listings with price drops from June 2021 to June 2022, Cary is the only North Carolina city on the list.
Located near Raleigh, the city has experienced rapid growth with people moving to the area. Even though the growth might be slowing a little, housing prices have remained relatively strong.
Located in Orange County, Orange is a coastal city between San Diego and Los Angeles. The year-over-year change in the percentage of listings with price drops in Orange was 499.8%.
Home prices in the area have always been on the higher end, but recently sellers have been slashing prices to try to elicit more offers from prospective buyers.
Topping the list with a 2,577.6% year-over-year change in the percentage of listings with price drops is Lansing. Considered “Mid-Michigan,” the state capital city has been dealing with both a housing shortage and increased buyer demand over the last few years.
Even though homes are still selling, they're sitting on the market longer and it’s becoming a little easier for buyers to purchase a house.
At the end of the day, there’s not much you can control about the housing market. Whether it’s interest rates for financing or changes in the local market, the real estate market can be unpredictable.
Even though sellers are slashing list prices across the country, the actual sale prices haven't decreased by much.
So if you’re looking to save money on housing costs, take a few minutes to review your current insurance and make sure you’re using one of the best home insurance companies.
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