Where Are Home Prices Falling—and Rising—the Most?
Home prices are still rising in most of the country as the Federal Reserve continues to raise interest rates in its efforts to tame inflation, but a few overheated metros are beginning to see double-digit declines, the National Association of Realtors reports. In the first quarter of 2023, high-priced cities such as San Francisco, San Jose, Calif., and Reno, Nev., posted year-over-year price drops of at least 10%, while destinations like Milwaukee, Dayton, Ohio, and Oklahoma City, Okla., saw prices rise by at least 10% on an annual basis.
While 70% of the metros NAR tracks are still experiencing an uptick in home prices, the national median price for a single-family existing home decreased slightly, by 0.2% to $371,200 in the first quarter. That reflects a slowdown in home prices in more places: In the previous quarter, the national median price rose 4%.
“Home prices are lower in cities that previously experienced rapid price gains,” [Lawrence] Yun notes. He flags cities like Boise, Idaho, and Austin, Texas, where home prices surged as high as 67% through 2022 but are now coming down. In the first quarter, year-over-year prices fell 13.5% in Austin, 10.3% in Boise and 7.3% in Phoenix, NAR’s report shows.
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