For many prospective homebuyers, the current landscape of the housing market may seem daunting, with soaring home prices and mortgage rates that are higher than ideal. However, amidst this seemingly challenging scenario, there is a glimmer of hope. A recent report by Realtor.com® has uncovered several cities where bargain hunters can find solace, with median home prices below $300,000.
According to the Realtor.com® March monthly housing report, the national median listing price has surged to $424,900. Despite this, there are seven metropolitan areas where homebuyers can still discover affordable housing options. These cities span across different regions of the United States, from the Northeast to the South to the Midwest.
“Continuing into the spring homebuying season, prospective homebuyers will find more options compared with previous years, particularly more affordably priced homes,” explains Sabrina Speianu, the economic data manager at Realtor.com®.
7 Metro Areas With Home Prices Below $300,000
Among these seven cities, Birmingham, AL stands out with its remarkable growth in listings. Despite a 4% annual increase in median prices to $290,000 in March, Birmingham experienced a substantial surge of 27.6% in housing inventory compared to the same period last year.
Interestingly, Rochester, NY, the only metro area with a decline in housing inventory (4%), still managed to see an 8.7% rise in median prices, reaching $277,000. Despite these increases, these cities remain a haven for bargain hunters, offering relatively low-priced homes amidst a backdrop of rising real estate values.
Exploring Affordable Metro Areas
- Birmingham, AL: With a median list price of $290,000, Birmingham has experienced a modest annual price increase of 4%. Notably, the city has seen a substantial 27.6% rise in inventory over the past year. For example, a property like 2872 Norwood Blvd is currently listed for sale at $279,900, offering buyers a glimpse into the affordability of the area.
- Buffalo, NY: The metro area boasts a median list price of $270,000, reflecting a significant annual price increase of 9.7%. Inventory has also grown by 4.2% over the past year. A sample listing, such as 714 Mount Vernon Rd priced at $269,900, showcases the affordability Buffalo has to offer.
- Cleveland, OH: With a median list price of $227,000, Cleveland has seen an 8.4% annual price increase. While inventory growth has been more modest at 0.4%, properties like 3134 W 73rd St, listed for $220,000, exemplify the affordability of the area.
- Detroit, MI: Detroit's median list price stands at $238,000, with a modest annual price change of 1.2%. Inventory has increased by 3.6% over the past year. For instance, a property like 1331 Cadillac Blvd, listed for $200,000, provides insight into the affordability of the city.
- Pittsburgh, PA: Pittsburgh boasts a median list price of $240,000, experiencing a notable annual price increase of 11.6%. Inventory growth has been robust at 10.8%. A property like 141 Sheldon Ave, listed for $229,900, illustrates the affordability of Pittsburgh.
- Rochester, NY: Despite a decline in inventory (-4.0%), Rochester has seen a significant annual price increase of 8.7%, with a median list price of $277,000. A listing such as 170 South Ave, priced at $250,000, provides a glimpse into the affordability of the area.
- St. Louis, MO: With a median list price of $292,000, St. Louis has experienced a modest annual price change of 4.7%. Inventory growth has been robust at 14.2%. A property like 2328 Bellevue Ave, listed for $275,000, showcases the affordability of St. Louis.
Navigating the Current Housing Market
While nationwide home prices have seen marginal growth, the combination of rising prices and high mortgage rates has intensified the challenges for prospective buyers. In March, home prices increased by 0.2% compared to the previous year. When factoring in today's mortgage rates, financing 80% of the typical home became $63 more expensive per month, raising the required household income to $88,600 for purchasing the median-priced home, excluding tax and insurance costs.
For homebuyers unable to meet this financial threshold, exploring areas where homes are priced under $300,000 offers valuable flexibility and affordability.
While the overall trend in the housing market suggests increasing prices and limited inventory, these seven cities provide a ray of hope for homebuyers seeking affordability. With median prices below $300,000 and an increase in available listings, these metros offer opportunities for those looking to enter the housing market without breaking the bank. As the real estate landscape continues to evolve, it's essential for