DALLAS (KDAF) — A new study has revealed the states where house prices have decreased the most over the last year, signaling which states are looking better for home buyers, and which need to improve.
The research, conducted by real estate website New Jersey Real Estate Network, analyzed data from Zillow from January 2023 to December 2023 to determine which states had the highest and lowest percentage increase in the average house value.
The study comes at a time when prospective buyers are finding it harder to find good properties within their budgets, making the search to secure a home more intense than ever.
With this in mind, the study found that the state that saw the biggest decrease in house prices was Louisiana. The southern state saw a percentage decrease of 2.19%, making houses around $4,370 cheaper in December compared to the start of the year.
Following in second place is Idaho, with a decrease of 0.75%, making home buyers in Idaho very happy. This resulted in around $3,268 saved for prospective home buyers at the end of the year compared to January.
The third cheapest was Texas, with a price drop on average 0.42%, saving buyers around $1,241 per purchase.
With a price drop of 0.36%, North Dakota comes in fourth, followed by Nevada in fifth with a 0.11% decrease.
On the opposite end of the study, the research found that Connecticut saw the biggest increase in house prices with an increase of 9.56% across the last year. The average house price here currently sits at around $381,620, which is nearly $30,000 more than the current U.S. average ($351,738), and has risen by $33,293 from the start of 2023.
In second spot is Maine with a rise of exactly 8%. Houses are currently valued around $385,019 on average, jumping over $28,504 in price since January 2023.
New Hampshire was found to be the state with the third highest increase, seeing a $31,160 jump in prices and a 7.49% increase.
In fourth place, New Jersey also saw a high increase with a 7.43% rise in the average house price. Houses here were $34,283 cheaper in January 2023, with the average house price estimate now being $495,469.
Ranking fifth, Rhode Island was found with a 7.1% rise in house prices, a jump of $28,874 for home buyers.
Commenting on the findings, a spokesperson from New Jersey Real Estate Network said: “The spike in housing prices across certain states results from a mix of factors. Economic vitality, job growth, and population influx can drive demand, while supply constraints and low interest rates amplify the increase in prices. Despite this, prospective buyers in 2024 have much to look forward to and the desire to own your own home is driving many to continue saving for their dream house.”