While prices have risen across most of the housing market, in some parts of the U.S., home prices have actually fallen since last year. To figure out which areas saw the largest decreases, real estate marketing platform Realtor.com analyzed median home price changes in ZIP codes across the nation. They found the declining home price trend could be found across every region of the country, with some areas seeing median price decreases of as much as 25%. Spotswood, N.J., took the top slot on the list, followed by South Elgin, Ill., and Carlsbad, Calif. Each of these ZIP codes has seen home prices drop by 25% from one year ago.
According to Realtor.com senior economic research analyst Hannah Jones, there are a number of reasons why a particular ZIP code has seen a dramatic drop in house prices—including an increase in inventory, which leads to more competition among sellers hoping to entice a buyer, as is the case in the South.
"The ZIP codes that have seen prices fall the most year over year vary, with all four regions represented," Jones explains.
"Areas where prices climbed quickly may be seeing a correction. ZIPs where inventory has started to build up, as is the case in much of the South, could see prices fall as sellers look to attract buyer attention." Read more