Real Estate Shake-Up: Home Prices Drop Across Majority of Major U.S. Cities

In a surprising turn of events, the latest data from real estate giant Zillow indicates home prices drop across 45 of the country’s 50 largest metropolitan areas in January 2024. Despite historically low inventory levels, which have traditionally kept prices high, the Zillow Home Value Index (ZHVI) recorded a month-over-month decrease in various cities.

Journalist Lance Lambert, who compiled the data for Residential Club, took to X (formerly Twitter) to share insights into the changes, shedding light on the specific metro areas experiencing the decline in home prices. Notably, cities such as Boston, Los Angeles, Philadelphia, and Atlanta saw home values drop between December 2023 and January 2024.

#NEW Zillow home price data for America's 50 largest metropolitan housing markets

1. MoM (month over month)
2. YoY (year over year)
3. Shift since 2022 peak
4. Shift since March 2020

Without seasonal adjustment, through January 2024

Chart via @ResidentialClub pic.twitter.com/fxq0bfx9gy

— Lance Lambert (@NewsLambert) February 16, 2024

The ZHVI figures revealed a varied impact on different cities, with notable decreases in:

• Hartford, CT (-0.2 percent)
• Providence, RI (-0.5 percent)
• Boston, MA (-0.4 percent)
• Los Angeles, CA (-0.1 percent)
• San Jose, CA (-0.1 percent)
• Milwaukee, WI (-0.6 percent)
• Philadelphia, PA (-0.2 percent)
• Cleveland, OH (-0.7 percent)
• Buffalo, NY (-0.7 percent)
• Chicago, IL (-0.4 percent)
• Columbus, OH (-0.3 percent)
• Cincinnati, OH (-0.4 percent)
• Virginia Beach, VA (-0.2 percent)
• Detroit, MI (-0.5 percent)
• St. Louis, MO (-0.5 percent)
• Kansas City, MO (-0.2 percent)
• Pittsburgh, PA (-0.6 percent)
• Richmond, VA (-0.3 percent)
• Louisville, KY (-0.5 percent)
• Washington, D.C. (-0.2 percent)
• Baltimore, MD (-0.3 percent)
• Charlotte, NC (-0.3 percent)
• Atlanta, GA (-0.3 percent)
• Orlando, FL (-0.2 percent)
• Oklahoma City, OK (-0.3 percent)
• Seattle, WA (-0.3 percent)
• Tampa, FL (-0.5 percent)
• Phoenix, AZ (-0.2 percent)
• Indianapolis, IN (-0.2 percent)
• Sacramento, CA (-0.3 percent)
• Raleigh, NC (-0.3 percent)
• Portland, OR (-0.4 percent)
• San Francisco, CA (-0.6 percent)
• Minneapolis, MN (-0.8 percent)
• Birmingham, AL (-0.6 percent)
• Denver, CO (-0.4 percent)
• Nashville, TN (-0.4 percent)
• Salt Lake City, UT (-0.5 percent)
• Memphis, TN (-0.6 percent)
• Houston, TX (-0.1 percent)
• Dallas, TX (-0.2 percent)
• Jacksonville, FL (-0.6 percent)
• San Antonio, TX (-0.5 percent)
• Austin, TX (-0.6 percent)
• New Orleans, LA (-1.1 percent)

Interestingly, only San Diego, CA (0.2 percent), New York, NY (0.1 percent), Riverside, CA (0.2 percent), and Las Vegas, NV (0.1 percent) experienced an increase in home values during January. Meanwhile, Miami, FL remained unchanged.

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While these modest drops may not be an immediate boon for prospective homebuyers, journalist Lance Lambert cautioned against reading too much into the January figures. Lambert suggested that January typically sees a slight dip in prices, with the real estate market often experiencing a seasonal pickup in February and March.

The year-over-year perspective paints a different picture, with 47 of the 50 largest U.S. markets showing higher home values in January 2024. Only Austin, San Antonio, and New Orleans continued to experience a decline, marking a stark contrast to their previous status as pandemic boomtowns.

Zillow’s nationwide data echoes the trend observed in major metro areas, indicating an average home value of $342,941 as of January 31, 2024. Despite the recent dip, this represents a 3.1 percent year-over-year increase and a marginal 0.12 percent rise from the previous month.

As the real estate landscape continues to evolve, Newsweek has reached out to Zillow for additional insights and comments. Stay tuned for updates as the market navigates these changes.