
For the first time since February, home prices slipped in September.
Nationwide, the typical home value ticked down 0.1%, according to the latest monthly market report from real estate website Zillow.
On the one hand, the one-month decline is much less than it was in September 2022, when values dropped 0.8% from the previous month. Still, Zillow notes that a decline at this time of year is unusual.
The average home value in the U.S. now stands at $350,091, which is a 2.1% increase from September of last year. Of the 50 largest major metros, 31 have seen home values climb over the past year.
Despite the fact that home prices remain strong in many places, other markets are seeing declines.
In a summary of the findings, Zillow chief economist Jeff Tucker says:
“Mortgage rates approaching 8% are taking the wind out of the market’s sails, pushing monthly mortgage payments beyond many buyers’ budgets. While attractive listings are still moving at a brisk clip, competition among buyers is fading quickly due to the shock of mortgage rates on top of normal autumn seasonality.”
In some key markets, the slide in home values reached as much as 10% year over year in September.
Following are the markets where home prices fell most significantly over that period.
5. San Antonio

Change in this metro area’s raw Zillow Home Value Index as of September:
- Year over year: 2.5% decrease
- Month over month: 0.9% decrease
A price correction probably was overdue in San Antonio. The Wall Street Journal recently reported that in 2014, families earning the median income could afford nearly two-thirds of homes in the metro. By the end of 2022, such families could afford fewer than one-third of San Antonio homes.
4. Phoenix

Change in this metro area’s raw Zillow Home Value Index as of September:
- Year over year: 4.2% decrease
- Month over month: 0.3% increase
Higher mortgage rates are keeping potential Phoenix homebuyers on the sidelines. In addition, many homeowners are reluctant to sell because they know they will have to endure much higher mortgage rates if they buy a new home.
The upshot: Less activity in the market, and slightly lower prices.
3. Las Vegas

Change in this metro area’s raw Zillow Home Value Index as of September:
- Year over year: 4.3% decrease
- Month over month: 0.3% increase
Nearly one-quarter of sellers in Las Vegas have cut their asking price, according to a recent GOBankingRates report.
The metro was hot when home prices were soaring nationwide, but things have cooled considerably there in 2023.
2. New Orleans

Change in this metro area’s raw Zillow Home Value Index as of September:
- Year over year: 8.8% decrease
- Month over month: 1.4% decrease
Home prices have been falling for a while in New Orleans. Some real estate agents say one factor driving down values is the rising cost of homeowners insurance in the city.
1. Austin, Texas

Change in this metro area’s raw Zillow Home Value Index as of September:
- Year over year: 10% decrease
- Month over month: 1.4% decrease
Austin saw bigger home price gains during the pandemic than just about anywhere else. But things have cooled recently, and some are even asking if the local real estate market is headed for a crash.
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