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.
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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 | City | Change in price (%) | Median sale price ($) |
|---|---|---|---|
| 1 | Seattle, WA | -17.7 | 774,950 |
| 2 | Las Vegas, NV | -14.5 | 416,000 |
| 3 | San Jose, CA | -17.6 | 1,375,000 |
| 4 | San Diego, CA | -15.8 | 800,000 |
| 5 | Sacramento, CA | -17.0 | 575,000 |
| 6 | Denver, CO | -12.2 | 570,000 |
| 7 | Phoenix, AZ | -14.5 | 455,900 |
| 8 | Oakland, CA | -20.7 | 910,000 |
| 9 | North Port, FL | -11.1 | 450,000 |
| 10 | Tacoma, WA | -12.8 | 543,000 |
“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.
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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.