10 US Cities Where Home Values Are Up — And 10 Where They’re Down

Determining whether the housing market is favorable for buyers or sellers right now depends on where you live.

In some places, the market continues to sizzle, with growing home values and brutal competition among buyers. In others, home prices continue to flatten and even decline as homes sit on the market waiting for buyers.

Nationally, there are more homes for sale right now than there’s been in more than five years, and sellers are feeling it. They’re cutting prices in record numbers as potential buyers save for down payments on homes they can barely afford and wait for interest rates to drop.

"We're witnessing the most balanced housing market conditions we’ve had in several years, with neither buyers nor sellers clearly dominating negotiations,’’ says Zillow Senior Economist Kara Ng. “Increased inventory has opened the door for buyers, yet the persistent gap between home prices and buyer budgets indicates there’s still room for price adjustments. Price cuts are the clearest signal sellers recognize the market has shifted."

In some markets — especially those in the Northeast — a rebalancing has yet to happen, and competition remains pitched for buyers. In others — especially in Florida and other southern metros — buyers have the edge.

If you’re home shopping or planning to buy soon, now’s a good time to check your finances so that you’re confident in your budget and can position yourself to get the best possible interest rate on a mortgage. With that in mind, here’s where things stand:

The national picture: more homes, more price cuts and stubbornly high mortgage rates

The typical U.S. home value now sits at about $369,000, less than half a percent above what it was at this time last year. The sluggish growth is due to more homes being listed for sale, and more homes lingering on the market this year as buyers continue to struggle with affordability.

The number of homes for sale in July was 18% higher than a year earlier, giving shoppers more choices than they’ve had in years. And those homes are staying on the market longer, typically 60 days from the day they were listed.

Meanwhile, Zillow data shows more than 27% of sellers lowered their asking price in July. Price cuts were most common in Sun Belt and Mountain West markets, where home values saw huge run-ups early in the pandemic. Cities with the largest share of discounted homes were Denver (38%), Raleigh (38%), Dallas (37%), Salt Lake City (37%), and Indianapolis (36%). 

On the flip side, 30.9% of homes sold above their list price in June.

Mortgage rates, which affect what buyers can afford, remain stuck, hovering between 6.5% and 7% since the beginning of the year. Barring a major economic event, economists expect rates to stay in that range for the rest of the year. Given the current rates, the typical U.S. mortgage in July for a buyer who put down 20% on their home purchase was $1,907.

Freddie Mac, 30-Year fixed rate mortgage average in the U.S.

Metros where home prices have changed the most

Real estate markets can favor either sellers or buyers, or fall somewhere in the middle. Zillow's market heat index shows buyers and sellers now have equal bargaining power on the national level. That rebalancing away from the dominant sellers market of the past four years is showing up in sagging home prices. 

Zillow economists project home values nationally will continue their trickle downward, ending the year 2% lower than they were when the year began. In July, half of the nation’s top 50 metros recorded price gains, and half saw declines.

Locally, five New York metros claimed more than half of the nation’s strong sellers markets while Florida metros, including several among the hottest markets in the country last year, accounted for nearly half of the nation’s 15 buyers markets, according to the market heat index.

The strong sellers markets are:

• Rochester, NY
• Syracuse, NY
• Buffalo, NY
• Hartford, CT
• Albany, NY
• Springfield, MA
• New York, NY
• Grand Rapids, MI
• San Francisco, CA

Buyers are calling the shots in: 

• Cape Coral, FL
• North Port, FL
• Miami, FL
• Urban Honolulu, HI
• McAllen, TX
• New Orleans, LA
• Deltona, FL
• Jacksonville, FL
• Austin, TX
• Jackson, MS
• Palm Bay, FL
• Tampa, FL
• Atlanta, GA
• Knoxville, TN
• Durham, NC

As for home values, here are the metros that gained and lost the most: 

Top 10 metros* with the largest month-over-month increase in home values

Top 10 metros with the largest month-over-month decline in home values

Top 10 metros with the largest year-over-year rise in home values

Top 10 metros with the largest year-over-year drop in home values*

“Why are home prices going up/down in my neighborhood?”

Local variations in home appreciation are due to a number of things that affect supply and buyer demand. They include:

1. Economic conditions and job opportunities. Metros with strong economic growth and a thriving job market tend to attract more people, leading to increased demand for housing and higher home values. 

2. Infrastructure development and amenities. People are willing to pay a premium to live in metros with well-developed infrastructure, such as efficient transportation systems, quality schools, healthcare facilities, and recreational areas.

3. Demographic trends. Things like population growth, aging populations, and migration patterns can influence housing demand and, subsequently, home prices. Metros with significant population growth or younger demographics may experience higher rates of home value appreciation.

How can I prepare financially?

The first thing to do is determine your budget and make sure your credit score is in good shape. Paying bills on time every month, avoiding major purchases or opening new accounts, keeping your borrowing to less than 30% of your available credit, and making sure your credit report is free of errors can go a long way to boosting your score. 

The BuyAbility℠ tool powered by Zillow Home Loans can help you see which homes you can afford based on your personal financial circumstances, including your credit score, and the latest mortgage interest rates.

Talk to your agent or lender about what local trends may mean for you

There is no one right time to buy for everyone.

Even sophisticated real estate investors find it difficult to time the market for the best deal, so experts recommend that you buy when you need to and when the time is right for you.

Your agent is your expert on local market conditions. They can help you shape an offer that takes rising or falling prices and other special things about your area into account when writing an offer or assessing whether a property is a good deal for you.

The trends described above can help you discuss with your agent whether you’re likely to pay more by waiting or whether buying now makes more sense.

*Based on nation’s 50 largest metros