Here's Where Real Estate Prices Are Cooling the Fastest in the US

Home prices in some US cities are finally cooling, with Seattle’s housing market slowing faster than any other in the country.

The 10 fastest-cooling markets are almost entirely in the West, with Seattle, Las Vegas, and the three California cities of San Jose, San Diego and Sacramento leading the way. That’s according to a report by real estate company Redfin that looked at several metrics, including prices, price drops, supply, pending sales, sale-to-list ratio and speed of home sales.

The fastest-slowing markets all saw double-digit drops in prices and sales volume compared to the previous year, a drastic change from the record price hikes seen during the pandemic housing boom amid remote work and a race for space.

Get 52 weeks of The WSJ Print Edition with daily delivery to your home or office for $318

In Seattle, about 34% fewer homes sold during a two-week period in August compared to a year earlier, and the typical home sold at prices 5% higher than last year, compared to a 23% year-on-year price increase just six months prior. Month over month, the typical home sold for 2% less in August than a month earlier.

Slowing Down

Seattle tops the fastest cooling metro real estate markets in the US.

Rank CityChange in price (%)Median sale price ($)
1Seattle, WA-17.7774,950
2Las Vegas, NV-14.5416,000
3San Jose, CA-17.61,375,000
4San Diego, CA-15.8800,000
5Sacramento, CA-17.0575,000
6Denver, CO-12.2570,000
7Phoenix, AZ-14.5455,900
8Oakland, CA-20.7910,000
9North Port, FL-11.1450,000
10Tacoma, WA-12.8543,000

“The housing market has changed very quickly in buyers’ favor,” Las Vegas Redfin agent Tzahi Arbeli said in a statement.

Prices are falling faster in cities where significant price spikes occurred during the pandemic, including Las Vegas, where home prices fell 3% month-over-month in August.

Subscribe to The Wall Street Journal and Bloomberg Digital for $89

Despite downward price pressure, rising inventory and more time before a sale is agreed, San Jose, Oakland, San Diego and Seattle remain among the most expensive places in the country, with the median price of a home in San Jose reaching $1.4 million in August and homes in Oakland selling at an median price of $910,000.