If you’re contemplating purchasing a home soon, there’s a silver lining: Property prices are seeing a decline nationwide. Following the housing surge induced by the pandemic, with plummeting interest rates and a rush of buyers relocating, the tide seems to be turning.
Tiffany Grant, MBA, and founder of Money Talk with Tiff, sheds light on this trend.
“The market overheated in 2021 and early 2022 and is now undergoing a self-adjustment,” she observed. “Additionally, the Federal Reserve’s interest rate hikes to combat inflation have made homeownership pricier. Consequently, with fewer active buyers, sellers are dropping prices to match demand.”
However, some areas are experiencing steeper declines. Here’s a snapshot of six cities where house prices are notably dropping:
Austin, Texas
Austin emerged as a prime destination for remote and tech professionals during the recent housing surge. Although initially lured by affordable real estate, a thriving tech environment, and spacious land ownership options, the influx of newcomers, combined with low-interest rates, inflated property prices. However, from its 2021 pinnacle, the market seems more balanced, with over a quarter of homes now reducing their asking prices to woo buyers.
Phoenix, Arizona
Phoenix, familiar with the roller-coaster of housing market cycles, witnessed property values plummet by over 50% during the 2008 crisis. While a repetition is unlikely, Goldman Sachs anticipates a potential 25% depreciation due to the currently bloated market. By February 2023, nearly one-fourth of the properties slashed their listing prices, signaling an impending market correction.
Seattle, Washington
Hosting tech giants like Amazon and Microsoft, Seattle has experienced skyrocketing property prices, with the median reaching almost $900,000 in 2022. However, climbing interest rates coupled with inflation have dampened the demand, resulting in a noteworthy decline to around $800,000. Over 21% of recent listings have revised their prices downwards.
St. Augustine, Florida
St. Augustine, America’s “oldest city,” enjoyed a surge in property prices due to the remote work trend. However, properties now linger longer on the market, with over 28% slashing their asking prices, reflecting the broader economic climate and climbing mortgage rates.
Las Vegas, Nevada
Las Vegas, no stranger to market volatility, is undergoing another correction. Despite the median price approaching $450,000 in 2022, it now hovers around $395,000. More than 22% of active listings have revised their prices, attributed largely to the high mortgage rates.
Huntsville, Alabama
Surprisingly, Huntsville’s thriving aerospace and government sectors contributed to a housing boom. But the scene is shifting. Over 20% of recent listings have reduced their prices, mirroring the broader national trend of adjusting to economic shifts and buyer capabilities.
