After months of major price corrections in a cooling housing market, home prices continued to trend downward in December 2022, but some metros saw more significant declines than others, Forbes reports. Home prices are down 0.8% on a monthly basis, but cities such as Phoenix, Portland, Ore., and Las Vegas are seeing even larger decreases of -1.9%, -1.9%, and -1.8%, respectively.
Higher mortgage rates are forcing sellers to lower their asking prices in order to attract priced-out buyers, and as 30-year rates continue to rise, home prices could continue to fall at a faster pace over the next several months.
In February, the median U.S. home-sale price fell 0.6% year over year, according to a report from real estate brokerage Redfin, marking the first annual drop since 2012 at a time when daily average mortgage rates hit 7.1%, pricing out buyers and forcing sellers to lower their asking prices to adjust to high mortgage rates. Home prices were likely to come down since mortgage rates rose, pushing borrowing costs to 16-year highs and crushing home-buyer demand, according to Redfin.
Advertisement
Related Stories
Housing Markets
Metros Where Housing Prices Have Doubled in Less Than 10 Years
Historical data show it's taken less than 10 years for home prices to double in 68 of the country’s 100 largest cities
Affordability
The Disappearing Act That Is Middle-Income Housing
An expert weighs in on the diminishing supply of middle-income housing, which is particularly acute in California, and what to do about it
Market Data + Trends
A Look at Homeownership Rates Across the Nation
Data for homeownership rates in the 100 largest US cities show Port St. Lucie, Fla., in the top spot, while West Virginia is the state with the most homeowners