Overbuilding and natural disasters led to price declines in some cities
While home prices are increasing nationally, a small number of the largest US metros are actually seeing prices decline, with the metro area of Santa Maria and Santa Barbara in California recording the biggest drop, according to an analysis by Reatlor.com.
The study found that prices dropped in 27 of the nation’s 350 largest metros. Realtor.com compared the median list prices from its listings data between the 12-month periods of May 2016 to April 2017 with May 2017 to April.
Realtor.com found that a particular reason drove the decline for each city. These included overbuilding in a boom market; mass layoffs or company closings amid oil-related economic downturns; and a spate of natural disasters.
The analysis revealed that prices in the Santa Maria and Santa Barbara area fell 17.7% to a median home list price of $951,600. The drop followed wildfires that swept through in July of last year and a series of mudslides that hit in January.
The 6.7% drop in home prices in California’s Napa wine country placed the metro at third following 2017 wildfires.
Other metros that posted price declines over the period were Pottsville, Pa., with its 5.7% unemployment rate well above the national average of 4.1%, and Austin and College Station in Texas, both metros seeing a surplus of homes for sale.
Rounding out the cities with the 10 highest price declines were Beckley, W.Va., Corpus Christi, Texas, Anchorage, Alaska, Houma, La., and Bismarck, N.D.
