For the first time in 10 years, it looks like home prices are starting to fall.
- A recent report from the Case-Shiller National Home Price Index finds that between June and August home prices fell 1.3%—marking the first decline since 2012.
- As mortgage rates stay uncomfortably high, housing prices will start to fall, at least according to predictions from John Burns Real Estate Consulting.
- The decline in prices isn’t equal across the U.S. Some markets are seeing an imperceptible .01% decrease while others are experiencing a significant 8.24% drop, Fortune reports.
Why it’s news
Housing affordability has been a pressing concern for Americans for several years. Shortly after the pandemic, the housing market saw a boom that included bidding wars resulting in buyers paying thousands above asking prices and waiving inspections.
Now, as mortgage rates rise the housing market is beginning to slow, resulting in prices starting to drop.
Prices still aren’t at pre-pandemic levels, but lower prices could allow buyers to make purchases, even with high mortgage rates.
The housing market is experiencing a wide range of price drops. The most dramatic reductions are along the west coast and the least significant changes are on the east coast. Here’s the data. . .
- San Francisco, California—8.24%
- Seattle, Washington—6.92%
- San Diego, California—5.44%
- Los Angeles, California—3.93%
- Portland, Oregon—3.35%
- Denver, Colorado—3.23%
- Phoenix, Arizona—2.39%
- Dallas, Texas—1.90%
- Las Vegas, Nevada—1.40%
- Minneapolis, Minnesota—0.81%
- Chicago, Illinois—0.40%
- Detroit, Michigan—1.05%
- Cleveland, Ohio—0.01%
- New York, New York—0.44%
- Boston, Massachusetts—1.13%
- Washington, D.C.—1.91%
- Charlotte, North Carolina—0.03%
- Atlanta, Georgia—0.21%
- Tampa, Florida—0.48%
- Miami, Floria—0.10%