Since July, home prices have been steadily declining as the market cools down for the first time in two years. According to Redfin, there are 10 U.S. cities in which the housing market is cooling down the fastest. We’ll be referencing this article by Redfin.
Due to high mortgage rates, inflation, and economic uncertainty, the housing market is in flux right now.
Redfin’s 2022 report ranked 100 of the most populous metropolitan areas in the United States and found that the markets cooling off the fastest from February 2022 to August 2022 were almost all on the west coast.
Top 10 cities where housing markets are cooling the fastest in 2022:
- Seattle, WA
- Las Vegas, NV
- San Jose, CA
- San Diego, CA
- Sacramento, CA and Denver, CO (tie)
- —
- Phoenix, AZ
- Oakland, CA
- North Port, FL
- Tacoma, WA
What does this mean?
“These are all places where homebuyers are feeling the sting of rising home prices, higher mortgage rates, and inflation very sharply. They’re slowing down partly because so many people have been priced out and partly because last year’s record-low rates made them unsustainably hot,” Redfin Chief Economist Daryl Fairweather stated in the report.
“The good news is that the slowdown is dampening competition and giving those who can still afford to buy more negotiating power.”
