Home prices are plummeting in these 9 major US cities

Real estate prices concern everyone, whether you own a home or are renting one. Affordability and cost of living are crucial factors when trying to make long-term plans, find new jobs, or deciding where and when to make an investment. Price bubbles come and go, and jobs move from one area to another. And when or if you need to move, finding a house in an area in which you can afford can be difficult.

To identify places with great housing affordability, GOBankingRates surveyed the 250 largest U.S. cities by population to determine where home prices are falling the most, according to Zillow's most recent figures. Based on year-over-year changes in prices, nine major cities saw prices fall by $5,000 or more, with cities clustered in the Southeast and South, especially Texas.

Click through to see where prices are falling — and see where they're skyrocketing.

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Major cities where home prices are plummeting
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Major cities where home prices are plummeting

9. Newark, Del.

  • April 2016 median list price: $220,000
  • April 2017 median list price: $215,000
  • Year-over-year change in median listing price: -$5,000

Newark home prices have been dropping for the past three years. From April 2014 to April 2015, the median list price dropped more than $3,000. The next year it dropped close to $5,000.

Newark lies in the Philadelphia-Camden-Wilmington metro area. Compared to the rest of the area, Newark has a higher percentage of low-income residents. Almost 20 percent are earning under $15,000, compared to around 12 percent for the metro area.

(gregobagel via Getty Images)

8. Columbus, Ga.

  • April 2016 median list price: $120,000
  • April 2017 median list price: $115,000
  • Year-over-year change in median listing price: -$5,000

Columbus lies on the border of Georgia and Alabama. While home values have increased 16 percent nationally in the last five years, in Columbus they've dropped by close to 9 percent, according to Sperling's. They might be dropping, but they're also the lowest of all the cities on this list. You'll be able to buy a lot of house for your money.

Home prices in Columbus have been falling for longer than the past year. In April 2014, the median listing price stood at $134,900. It dropped to $129,900 by April 2015, then declined nearly $10,000 over the next year. From 2014 to 2017, the median listing price has declined by nearly 15 percent.

7. Montgomery, Ala.

  • April 2016 median list price: $124,900
  • April 2017 median list price: $119,900
  • Year-over-year change in median listing price: -$5,000

Montgomery's housing statistics have been on a downward trend for more than a year. New home closings were down year-over-year from 2015 to 2016, according to Builder Online, as were the average values of newly sold homes over the same period.

Median home sale prices are falling as well. Besides the $5,000 drop from 2016 to 2017, Montgomery's median listing price has declined significantly — by more than $7,300 from April 2015 to 2016. Home prices in Montgomery are close to what they were in 2012, the year that most markets bottomed out after the housing bubble burst.

6. Round Rock, Texas

  • April 2016 median list price: $315,000
  • April 2017 median list price: $309,900
  • Year-over-year change in median listing price: -$5,100

Round Rock is part of the Austin metro area, where home prices have boomed in recent years. Migrating California residents have contributed to this trend, with more than 15,000 settling in the Austin area in the first five years of this decade, per U.S. Census figures.

The falling home prices are most likely just temporary. Housing prices have been on a steady increase for years in Round Rock and the Austin area. From a listing of $273,545 in April 2014, the median price shot up to just under $282,000 a year later, and then up to $315,000 by April 2016.

Warning: Don't Fall for These Tricks When Buying a Home

(Getty Images/iStockphoto)

5. Anchorage, Alaska

  • April 2016 median list price: $324,600
  • April 2017 median list price: $314,900
  • Year-over-year change in median listing price: -$9,700

Anchorage was on a four-year streak of rising home prices until the end of 2016, according to Alaska Dispatch News. From April 2012 to April 2016, the median listing price surged by almost $82,000. Now prices are drifting back to earth a little bit, as the Alaskan economy softens thanks to lower oil prices.

(yenwen via Getty Images)

4. Houston

  • April 2016 median list price: $329,900
  • April 2017 median list price: $319,000
  • Year-over-year change in median listing price: -$10,900

According to Metrostudy, the Houston area boasts the second-highest volume of new homes in the country, behind only Dallas-Fort Worth. New home starts are down year-over-year, though the site predicts 2018 to see more.

Looking at the overall Houston metro area, home prices have been falling slightly as well. The median listing price reached $294,000 in April 2015, then declined by $4,000 a year later and stands at $289,999 as of April 2017.

More in Real Estate: The Cost of Renting vs. Owning a Home in Every State

3. McAllen, Texas

  • April 2016 median list price: $220,000
  • April 2017 median list price: $205,000
  • Year-over-year change in median listing price: -$15,000

While prices have dropped substantially from 2016 to 2017, it's difficult to say if this is part of a larger trend or just a hiccup. From April 2014 to 2015, the median listing price fell just $1,000 before a gain of more than $40,000, from $179,000 to $220,000 over the next year.

According to Builder Online, new home sales and new home closings are down year-over-year in McAllen. The housing market and economy in general of McAllen are closely tied to the border economy, as the city sits across the Rio Grande from Mexico. According to Arch MI, a mortgage insurance company, out of the top 100 largest cities in the U.S., McAllen ranks among the most affordable, so your paycheck will stretch further.

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2. Miami

  • April 2016 median list price: $450,000
  • April 2017 median list price: $435,000
  • Year-over-year change in median listing price: -$15,000

Just like in McAllen, list prices in Miami have been volatile for the past three years. Home prices increased year-over-year from 2014 to 2015, and from 2015 to 2016, before falling last year.

Miami-Dade County saw declining residential home sales in the first quarter of this year. More concerning is the large oversupply of condos in the county, especially luxury condos, which is likely to lead to decreasing prices.

(Ugo Lora via Getty Images)

1. Sugar Land, Texas

  • April 2016 median list price: $415,495
  • April 2017 median list price: $399,500
  • Year-over-year change in median listing price: -$15,995

Sugar Land is a Houston-area suburb, where home sales have declined significantly in the past two years. The median listing price reached a peak of $446,495 in December 2015 before falling about $30,000 by April 2016. Median list prices are now below $400,000.

Up Next: The Best City in Every State to Buy a Home

(cheng8 via Getty Images)

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Methodology: GOBankingRates surveyed the largest 250 U.S. cities by population, evaluating them for the biggest drop in median listing price from April 2016 to April 2017. All cities included here experienced a drop of at least $5,000 in median listing price. All data was sourced from Zillow, updated as of April 2017.

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