Home prices are falling in different parts of the USto its highest level in years. The decline has been particularly sharp in once red-hot markets such as Austin, Texas.
Residential real estate prices in the city, long known for its swinging music scene, progressive politics and booming tech sector, have fallen more than 10% since June, according to Realtor.com. During this the demand for houses increasedAs many Americans fled large cities in favor of smaller metros, while inventory shortages drove prices even higher. But the number of properties available is increasing in Austin, where the median price of a home was $558,275 as of September.
Other sunbelt cities are also seeing a sharp reduction in housing costs. In Phoenix, home prices have fallen nearly 10% since June, with an average listing price of $493,500, according to Realtor.com. Other cities with significant declines in the past few months:
- Palm Bay, Florida (down 8.9% from June)
- Charleston, South Carolina (8.6%)
- Ogden, Utah (8.6%)
- Denver, Colorado (8%)
- Las Vegas, Nevada (7.9%)
- Stockton, California (7.7%)
- Durham, North Carolina (7.5%)
- Spokane, Washington (7.4%)
Across the country, home prices have dropped by thousands of dollars in recent months as sellers face a dwindling pool of potential buyers. Los Angeles, Sacramento and San Francisco are also seeing declines in California, with each city recording a 3.2% or more decline during the summer,,
Despite the decline, home prices today are still higher than in the same period last year, said Danielle Hale, chief economist at Realtor.com, in the report.
Mortgage rates have reached theirand has now doubled in early 2022. As a result, the market for red-hot buyers is beginning to cool off. According to Freddie Mac, the average rate on a 30-year mortgage was 6.6% as of Tuesday. A one percentage point increase in a mortgage rate can add up For a homeowner’s monthly payment.
Economists expect mortgage costs to remain high as the Federal Reserve continues to increase its benchmark interest rate in an effort to reduce inflation.
Analysts at the Wells Fargo Investment Institute said in a report, “As interest rates continue to rise, we expect mortgage rates to rise as well, cooling demand for housing, and therefore reducing inflation in the coming year.” should contribute less to the pressure.” “We don’t expect a repeat of 2008.”