Seven Key US Cities Offering Affordable Housing Options

The real estate market has seen an uptick in activity during the autumn months, though many potential buyers are still holding off, hoping for prices to drop further.

Mortgage rates saw a significant decline from their summer highs by mid-September, which invigorated the housing market. However, rates have rebounded considerably since then. According to the National Association of Realtors, pending home sales surged by 7.4% in September, marking their largest growth since spring. Moreover, Realtor.com data from October suggests a moderate increase in property transactions last month.

"We observed a rise in contract signings nationwide, as buyers seized the chance provided by lower mortgage rates and a wider selection of available properties," stated Lawrence Yun, the NAR's chief economist. "Should employment rates persist in climbing, housing inventory expand, and mortgage rates stabilize, we anticipate further improvements."

Rising Home Inventory

Yet, even with these marked increases in transactions, there are indications that homes are not selling at a rapid pace. For the past twenty years, property owners have had the upper hand over purchasers, largely due to a persistent housing shortage that kept pushing prices upward.

This dynamic might be shifting. Realtor.com reported a record number of homes on the market since the pandemic, with new listings jumping nearly 5% over the year. Active listings have risen by 29.2% for the twelfth consecutive month, resulting in the most substantial inventory since December 2019. In addition, the count of unsold properties has increased by 22.5% from last year in October.

According to Realtor.com economist Ralph McLaughlin, the typical home now takes roughly 58 days to sell—marking the slowest October in the past half-decade. This duration has extended by over a week compared to the previous year and by three days compared to September.

Unchanged Pricing Strategy

Despite sellers' challenges, they have not significantly adjusted their pricing strategies. Realtor.com highlights that 18.6% of properties had their prices trimmed last month, mirroring last year's figure. This accounts for why the median sale price remains steadfast around $425,000 from 2023.

Exploring Affordable Cities

Despite a general hesitation among sellers to lower prices substantially, certain locales still offer potential buyers competitive deals. From the 50 biggest real estate markets analyzed by Realtor.com, only seven stand out as being more than 10% cheaper than the national median of $424,950, with a growth in active listings of 20% or more over the past year.

1. Baltimore, Maryland

The median listing price here is approximately $369,995, with a modest year-over-year growth of 0.7%. Active listings are up by 31.1%, while new listings have increased by 24.9%. Homes typically remain on the market for about 36 days.

2. Birmingham, Alabama

The typical asking price in Birmingham is around $299,947, having increased by 1.7% from the previous year. Active listings have grown by 24.6%, with new ones up by 11.5%. Properties usually spend 57 days on the market.

3. Cincinnati, Ohio

In Cincinnati, home prices average $331,460 and have experienced a decrease by 7% over the year. There is a 25.7% rise in active listings, and new listings have seen a 5% increase. Homes spend about 37 days on the market on average.

4. Columbus, Ohio

Homes in Columbus are listed at a median price of $368,900, up by 0.7% from last year. Active listings are up by 33.2%, though new listings declined slightly by 1.1%. Typically, homes stay on the market for 39 days.

5. Houston, Texas

In Houston, the median price is $369,450 with a negligible increase of 0.1%. Active listings climbed by 26.2%, and new listings grew by 11.9%. The market time for homes averages at 50 days.

6. Memphis, Tennessee

The average listing price is $334,900, with a growth rate of 5.1% year-on-year. Active listings increased by 30.6%, but new listings shrank by 9%. Homes typically sit on the market for 64 days.

7. Oklahoma City, Oklahoma

Oklahoma City reports a median listing price of $314,825, with a decrease of 5.9% over the past year. Active listings have swelled by 37.1%, while new listings are up by 14.6%. Homes generally remain listed for 48 days.