10 Markets Where Home Prices Are Plummeting

More than half of the nation’s biggest housing markets have seen home prices fall from their peak — with some cities off by up to 10%.

Of the top 400 markets, 219 have recorded declines, according to a Fortune analysis of the latest Zillow Home Value Index data. In most places, the fall has been modest so far — an average of 2%.

But some markets are being hit much harder. Following are several markets where home values are down substantially from the peaks they recorded earlier this year.

10. Boise, Idaho

Home values in this market are down from their 2022 peak by: 7.06% as of October

Falling prices in Boise are causing people to sit up and notice.

In September, folks using the internet searched for the term “U.S. Housing Bubble” more than at any point in the past 15 years, according to Google trends data.

Residents of Idaho made more of those searches than anyone else, reports the New York Times.

9. San Diego

Home values in this market are down from their 2022 peak by: 7.12% as of October

As prices fall in San Diego, market dynamics are changing, real estate agent Ken Kaplan tells a local TV station:

“We’re seeing sellers sitting on the market longer, we’re seeing more price reductions because buyers are a little more hesitant, but the other thing that’s happening that we are starting to see, that we haven’t seen in many years, we are also seeing sellers paying closing costs for buyers.”

8. Fairbanks, Alaska

Home values in this market are down from their 2022 peak by: 7.36% as of October

The housing market in Alaska has gotten much tighter, according to a report from the Alaska Department of Labor and Workforce Development. That has resulted in higher home prices and rents.

However, sinking home prices might bring relief for some.

7. Athens, Texas

Home values in this market are down from their 2022 peak by: 7.39% as of October

After years of soaring prices, things are coming back to earth in east Texas, where Athens is located.

As Luis Torres, senior business economist with the Federal Reserve Bank of Dallas, recently said during an address at the University of Texas at Tyler:

“The higher mortgage rates. I think that’s a major contributor of why we are seeing a slowing down in the housing market.”

6. San Jose, California

Home values in this market are down from their 2022 peak by: 7.49% as of October

Through September, San Jose had seen a home equity decline of 24%, according to mortgage analytics firm Black Knight.

In fact, California accounts for more than half of the national decline in mortgage holder equity, with Golden State homeowners suffering a loss of $770 billion.

5. Santa Cruz, California

Home values in this market are down from their 2022 peak by: 7.58% as of October

In May, Santa Cruz made the list of “10 Smaller Housing Markets That Are Now Red-Hot.”

However, the frenzy has started to subside in this city located 90 minutes south of San Francisco.

3. Fernley, Nevada (tie)

Home values in this market are down from their 2022 peak by: 8.18% as of October

Home sales have seen a sharp slowdown in Fernley, a town east of Reno. It’s all part of a market returning to a better sense of balance, says Sara Sharkey, incoming president of the Reno-Sparks Association of Realtors.

She tells a local TV station:

“Sellers will need to have their homes on the market a little bit longer, going back to a normal market, which is what we want.”

3. San Francisco (tie)

Home values in this market are down from their 2022 peak by: 8.18% as of October

Prices are dropping fast in San Francisco. But local real estate agent John Yen Wong tells a local TV station that is not necessarily a bad thing:

“Given the market that we had before where there were 10, 15 offers for a property, that was sort of an unreal market. Now it’s moving into a more reasonable discussion between buyer and seller type of market.”

2. Reno, Nevada

Home values in this market are down from their 2022 peak by: 8.47% as of October

In August, Reno was one of the “10 Cities Where Home Prices Are Predicted to Decline the Most.”

Right on schedule, prices are now falling in the “Biggest Little City in the World.”

1. Austin, Texas

Home values in this market are down from their 2022 peak by: 10.21% as of October

A new report suggests that international buyers were responsible for some of the runup in home prices in Austin in recent years.

But after years of extraordinary price growth, the housing market’s fortunes have turned in a big way here, and in other parts of Texas.

In a recent press release, Russell Berry, chairman of Texas Realtors, says:

“We had two years of an unprecedented housing market. The number of homes being sold now is closer to sales numbers prior to the pandemic. While higher interest rates present a challenge for buyers, the good news is that buyers have more homes to choose from and are less likely to find themselves in a bidding war.”