By Aarthi Swaminathan | MarketWatch
Rising rates and waning buyer demand is finally weighing on home prices.
With the 30-year fixed-rate mortgage averaging at 7.12%, according to Mortgage News Daily, Zillow Z , Realtor.com, and John Burns Real Estate Consulting, all noted price drops in cities that were hot over the last two years.
Most of these cities were pandemic boomtowns, as remote work enabled many workers to find housing outside of big, expensive mega-cities.
Rick Palacios Jr., director of research and managing principal at John Burns Real Estate Consulting, said that “no housing market is immune to home-price declines” with mortgage rates above 7%.
“Many more regional housing markets will soon follow the downward pricing path that’s already playing out quickly along the West Coast, along with markets that rode the recent home-price appreciation wave hardest such as Austin, Boise, and Phoenix,” he added.
Realtor.com’s top five declining house markets
Realtor.com looked at monthly median home-list prices, and how they’ve fallen since the market peaked in June.
Between June and September the median home list price fell the most in:
- Austin, the median home list price fell by 10.3%
- Phoenix, by 9.9%
- Palm Bay, Fla., by 8.9%
- Charleston, S.C., by 8.6%
- Ogden, Utah, by 8.6%
Realtor.com is operated by News Corp subsidiary Move Inc., and MarketWatch is a unit of Dow Jones, which is also a subsidiary of News Corp.
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