Key Indicators
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- A recent study looked at the 100 largest U.S. cities’ housing markets to see which ones are cooling off the quickest.
- In putting together the list, the research took into account a number of criteria, such as price decreases, supply, and the rate at which homes were selling.
- Historically costly places like Seattle and popular destinations for relocating people like Las Vegas are two examples of the real estate markets that are cooling off the fastest.
The country’s scorchingly hot housing market is beginning to cool, notably in a few areas. Price declines are influenced by a number of factors, including high mortgage rates, inflation, and overall economic ambiguity. Some homebuyers may have an opportunity because homes are staying on the market for longer.
Here are the ten housing markets in the United States that are cooling off the quickest, per a recent Redfin research.1 If you’re looking for a home in any of these, you might be in a better bargaining position than buyers were a few months ago.
Seattle, WA
Seattle’s home market is slowing down more quickly than any other property market in the nation, according to Redfin. For purchasers who can afford higher mortgage rates or can pay cash, this could be a chance in the nation’s most expensive property market, which has long been the largest city in Washington state.
In Seattle, the first two weeks of August saw 34% fewer home sales than the same period last year, according to the survey. Additionally, prices are falling; in August, the typical home sold for 2% less than it had a month earlier. As a result, home sellers might be more inclined to bargain with you over the price.
Las Vegas, Nevada
Seattle was a sizzling market before the epidemic, but Las Vegas rose to prominence when remote work made moving an option. According to KSNV News 3, Las Vegas became known as a “Zoom Town” because residents there could save money by not living in pricey metropolitan cities like New York City, San Francisco, or Seattle.
Sadly, high demand drove up property prices significantly. For example, according to Redfin, the average home in Las Vegas cost roughly 35% more in August than it did at the beginning of the outbreak. Despite this, things may be changing for the better for consumers. Between July and August, there were 26% fewer home sales and a 3% drop in property prices.
San Jose, CA
San Jose, which is part of Silicon Valley, has long been one of the most expensive property areas in the country. Despite being less expensive than the surrounding city of San Francisco, San Jose’s cost of living is still 114.5% higher than the national average, according to Rocket Mortgage.
However, there is a slump in the San Jose home market. San Jose, according to Redfin, has the third-fastest cooling market in the nation. That can be excellent news if you want to establish yourself in Silicon Valley. The level of competitiveness has decreased.
San Diego, CA
California’s San Diego is in fourth place. It has historically been an expensive city for homebuyers, like many West Coast cities. It’s simple to understand why people desire to live in San Diego given that it’s recognized for its sand and sunshine.
However, demand can be muted when high home prices are coupled with high mortgage rates, and that appears to be the case in San Diego. According to the Redfin survey, San Diego’s inventory is expanding and its home prices are declining.
Sacramento, CA
Sacramento is another pricey Californian city with a cooling housing market. Sacramento is actually tied with Denver, Colorado, for the fifth-fastest cooling market in the nation, according to Redfin research.
The time may be right to purchase real estate in this state capital, which attracted many remote employees. For instance, according to the source, the price per square foot in the housing market has changed by -17.0 percentage points.
Denver, CO
Denver’s housing market heated up as remote workers learned about the Mile High City, tying Sacramento for fifth place. According to 5280 Magazine, a surge in out-of-staters bidding on homes caused bidding wars and raised housing costs to all-time highs.
The market is, however, beginning to revert to pre-pandemic levels. The Colorado Association of Realtors claims that purchasers are waiting longer and paying less, as reported by FOX31. As a result, the amount of inventory accessible is approaching pre-pandemic 2019 levels.
Phoenix, AZ
With the expansion of remote employment, the real estate market in Phoenix also boomed. However, Phoenix REALTORS’ market data indicates that the property market is normalizing, according to AZ Big Media. Three months’ worth of properties has been added to the inventory.
Compared to the previous fall, when the source claims “just one month of supply was the truth,” this is an increase. So, purchasers have more options and more breathing room. Phoenix has the seventh-fastest cooling market, according to Redfin research, which supports this.
Oakland, CA
Homebuyers in the Bay Area have good news: According to Redfin, the housing market in Oakland is cooling off.2 “People who can afford to purchase right now could get something for $100,000 or $200,000 less than a few months ago,” real estate agent Joanna Rose tells Business Wire.
The market is, however, beginning to revert to pre-pandemic levels. The Colorado Association of Realtors claims that purchasers are waiting longer and paying less, as reported by FOX31. As a result, the amount of inventory accessible is approaching pre-pandemic 2019 levels.
North Port, FL
Florida’s North Port is ranked eighth. It’s noteworthy that it’s the only city outside of the West to make the top 10. Although some more Florida markets might experience a considerable cooling due to the devastation Hurricane Ian left behind.
For instance, according to Redfin, pending property sales have recently dropped by more than 50% in North Port, Cape Coral, and Naples.3 Even though Southwest Florida is not in the best of health, all three have historically been sought-after migration destinations.
Tacoma, WA
The tenth fastest cooling housing market in the US is in Tacoma, Washington, which completes the list. Tacoma is the third-largest city in the state4 and is situated about 35 miles from Seattle. According to Money, it was also a desirable location for wealthy locals who relocated during the pandemic.
There is a cooling trend in the Puget Sound region as a result of the declining real estate markets in Tacoma and Seattle. As a result, anyone wishing to purchase a home in the area may profit from reduced pricing and fewer competitors. Of fact, many people find it challenging to purchase due to high mortgage rates.
Featured Image: Pixabay @ Giovanni_cg
