Continuing a recent overture of good news for prospective buyers and investors, about one in five homes for sale dropped in prices last month.
February saw 21.1 percent of homes for sale nationwide drop in price, which was the largest rate drop in the last decade, according to a report from Redfin. While more than one in five homes dropping in price is a significant change, Redfin analyst Tim Ellis said it follows a broader trend.
“Price drops are a highly cyclical measure, typically peaking late in the year and falling dramatically to start each new year, and this year is no different,” Ellis wrote. “However, even though the share of homes with price drops is down quite a bit from the fall and isn’t up year-over-year as much as it was then either (+5.5 points then vs. +3.6 points now), it is starting 2019 at a much higher level than the past several years.”
The drop in home prices is affecting certain areas more than others.
In a few markets, more than one-in-three homes for sale drop in price, including Fresno, California, whose rate leads the nation among metro areas with at least 500,000 people. In Fresno, 40.4 percent of homes have dropped the price, followed by No. 2 Tampa at 33. 3 percent, No. 3 Indianapolis at 32.4 percent and No. 4 Bakersfield, Calif. at 31.4 percent.
While the above metros have maintained large shares of homes with price drops for years, there are new large cities seeing an increase in drops over the last year. Leading large metros in the largest year-over-year increases of homes with price drops is Las Vegas at 13.6 percent, followed by Seattle at 12.8 percent and Albuquerque at 12.2 percent.
Check out the graphs below for more insight on the increase of price drops around the nation, according to Redfin.
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