Rising interest rates and declining buyer demand are finally weighing on home prices.
the average interest rate for a 30-year fixed-rate mortgage is 7.12%. mortgage news dailyGiraud
Both Realtor.com and John Burns Real Estate Consulting point to falling prices in cities that have trended upwards over the past two years.
Most of these cities were pandemic boomtowns as remote work allowed many workers to find housing outside of the large and expensive megacities.
With mortgage rates above 7%, “no housing market is immune to falling home prices,” said Rick Palacios Jr., research director and managing principal at John Burns Real Estate Consulting. .
““Many more regional housing markets will follow the path of price declines already underway on the West Coast.”“
“Many more local housing markets will soon follow the path of price declines that are already rapidly unfolding along the West Coast, with markets such as Austin, Boise and Phoenix riding the hardest in the recent wave of house price increases. I will follow,” he added.
Based on the company’s September Burns Home Value Index, here are the top five markets with the biggest declines from peak to date. All markets peaked in March or April, Palacios said. says Jr.
Los Angeles down 11% from peak
San Francisco down 11% from peak
San Diego down 9% from peak
San Jose down 8% from peak
Orange County, California is down 7% from its peak.
Home prices in Austin, Boise and Phoenix also fell 6%, according to the Barnes Index.
Realtor.com and Zillow also saw similar declines, albeit over different time periods.
Realtor.com Top 5 Declining housing market
Realtor.com looked at median monthly home prices and how the market has fallen since peaking in June.
From June to September, the biggest declines in median home prices were:
Austin median home prices down 10.3%
Palm Bay, Florida, 8.9%
Charleston, South Carolina, 8.6%
Ogden, Utah: 8.6%
(Realtor.com is operated by Move Inc., a subsidiary of News Corp. MarketWatch is a division of Dow Jones, which is also a subsidiary of News Corp.)
Zillow Top 5 Declining housing market
Zillow looked at changes in house prices from August to September and found that prices fell the most in those cities.
Phoenix up 2.3% from August
Las Vegas, 1.9%
New Orleans, 1%
Riverside, California, 0.9%
Phoenix prices are still up 8.4% year-on-year, Phoenix Realtors told MarketWatch. The median selling price in September was $450,000 for him.
The average number of days a home is on the market has increased from 29 to 47 last September.
But “the market is finally normalizing,” Phoenix Realtors president Andrea Crouch said in a statement.
“Sellers now have an opportunity to carefully evaluate the number of more reasonable and realistic offers,” she added. “
Thinking about the housing market? Write to MarketWatch reporter Aarthi Swaminathan ([email protected]).