More than half of the nation’s top 50 markets are seeing declines, but the drops are biggest in these cities.
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After months of speculation, home prices finally have begun to fall in many housing markets across the country.
Prices slipped in 30 of the 50 largest metropolitan areas in the U.S. from June to July, according to Zillow. Overall, they still remain elevated over the past year — up 16% — but the predicted housing recession may be underway.
Home prices in the U.S., as measured by the raw Zillow Home Value Index, dipped 0.1% from June to July. That was the first decline in the index in a decade.
In the following markets, prices already have fallen by more than 2%.
Change in this metro area’s raw Zillow Home Value Index from June to July: 2.4% decline
California cities dominate this list. Zillow notes that homes are lingering on the market longer, which allows buyers to be a bit choosier.
Riverside itself is among “10 Cities Where Home Inventory Is Rising Fast.”
Change in this metro area’s raw Zillow Home Value Index from June to July: 2.5% decline
Raleigh was one of the hottest markets in the pandemic, and bidding wars here were commonplace as recently as the spring.
But higher mortgage rates are taking their toll here, as they are in just about every market nationwide.
Looking for a new home loan? Stop by Money Talks News’ Solutions Center and search for a great mortgage rate.
Change in this metro area’s raw Zillow Home Value Index from June to July: 2.5% decline
As we reported earlier this summer, San Diego has been among the markets with the biggest declines in home sales.
Now, prices are falling in this city, too.
Change in this metro area’s raw Zillow Home Value Index from June to July: 2.5% decline
California’s capital city is among the “7 Housing Markets Where Bidding Wars Are Disappearing.”
As the level of competition for homes slides, so do prices.
Change in this metro area’s raw Zillow Home Value Index from June to July: 2.7% decline
Texas has been a major destination for those seeking new homes during the pandemic, causing home values in the state capital of Austin to spike more than 65% above their true value, as we report in “20 Housing Markets Overvalued by More Than 50%.”
Given that reality, it was probably inevitable that a correction would follow.
Change in this metro area’s raw Zillow Home Value Index from June to July: 2.8% decline
Sometimes, it seems like everybody is fleeing California.
Nowhere is this truer than in San Francisco, which is losing more residents than any other major city.
Change in this metro area’s raw Zillow Home Value Index from June to July: 2.8% decline
Phoenix is the biggest city in the state that ranked No. 3 on the list of “10 States That Have Attracted Hordes of Wealthy Americans.”
These well-heeled residents probably pushed home prices higher, but values are now coming down.
Change in this metro area’s raw Zillow Home Value Index from June to July: 4.5% decline
In July, we reported that San Jose was No. 1 on the list of “10 Housing Markets That Are Cooling Fastest.”
According to Zillow, prices have dipped by a much bigger degree here than in any other major market.
Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.
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