Housing markets that were the soaring stars during the height of the COVID-19 pandemic are now coming back down to earth, according to real-estate brokerage firm Redfin.
Sales also are lagging in markets that are known as technology hubs as widespread layoffs hit that industry, according to a Redfin analysis of data in the 100 most populous U.S. metropolitan areas.
Redfin compared data between February 2022 and February 2023 to identify the markets that are cooling fastest.
It based the list on several criteria, including:
- Price drops
- Pending sales
- Sale-to-list ratio
- Share of homes that went off the market in two weeks during the period
Redfin says it used February 2022 as its comparison point because that was when the housing market “reached its pandemic-era peak in terms of demand and competition while the number of homes for sale was at a low.”
Following are the cities where housing markets are cooling fastest.
Oakland actually finished first in a ranking of the “The 15 Hottest Real Estate Markets of 2022.” But like many places in the U.S. West, Oakland’s housing market has cooled recently.
Difficult as it might be to believe, Sacramento was among the “15 Cities Where Home Prices Are Still Below Their Pre-Great Recession Peak” at the end of last year. And with the market cooling fast, it appears that record high set more than a decade ago will be safe in Sacramento for a while.
San Jose, California
While the market in San Jose has cooled off in recent months, a turnaround might be underway. In the summary of Redfin’s findings, Laxmi Penupothula, a Redfin real estate agent in San Jose, says:
“I’m seeing bidding wars on homes that are priced fairly and accurately, and the overall market looks strong this week. Overpriced listings are the ones sitting on the market.”
A recent study out of the University of California, San Diego, Rady School of Management projected that Stockton was among a handful of places where home prices could plunge this year.
To find out more, read “5 Places Where Home Prices Will Plunge up to 18% This Year, Experts Say.”
If the market in Las Vegas is taking a breather, it is well-earned. The city has seen tremendous price growth in recent years, as recounted in the story “Home Prices in 190 U.S. Metros Broke All Known Records in the Last Decade.”
Denver has been among the most popular cities to move to in recent years. But things have changed recently, and Denver is now among the “15 Cities With the Biggest Increase in Housing Inventory.”
Reports say a large percentage of sellers in Tacoma are lowering their asking price. Recently, property analytics firm CoreLogic said Tacoma is among the “5 Housing Markets at ‘Very High’ Risk of Falling.”
Sellers are not feeling the love anymore in Phoenix. The city is among the “10 Housing Markets Where Bidding Wars Are Disappearing.”
Late last year, we reported that residents were fleeing Seattle and other big cities in search of better prospects elsewhere. But don’t count the city out just yet: It remains one of the “15 Most Glamorous Cities in the U.S.”
Not only is Austin’s market cooling, but it’s been stuck in a bit of a deep-freeze. By February, prices had fallen by 11%, putting Austin at the top of the list of “4 Places Seeing Their Worst Home Price Declines in Over a Decade.”
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