US: Cities where housing costs fell the most in February 2023

He US real estate market gives for everything While existing home sales fell in January for the 12th consecutive month on high prices, record inflation and high interest rates, there are places where home values ​​have declined.

Existing home sales fell 0.7% in January from the previous month, according to data released on Tuesday National Association of Real Estate Agents (NAR). Compared to the same period of the previous year, these sales decreased by 36.9%.

But while home prices are rising across the country as a whole, some individual markets are showing declines from a year ago. Positive regional data hides the fact that 20 of the 186 cities monitored by the NAR – the equivalent of 11% of the total of that pie – saw house prices fall in the fourth quarter of 2022 and in January and February 2023.

“Some markets could see double-digit price drops, especially some of the more expensive parts of the country, which also saw weaker occupancy and more cases of residents moving to other areas,” he said. Lawrence Yun, the owner of NAR.

Many of the more expensive places are the ones that lower their prices the most. Nearly all in the West and half of the top 10 most expensive cities are in California.

Saint Joseph, California was the most expensive place to buy a home in the United States in the fourth quarter. But that $1,577,500 average price actually decreased by 5.8% compared to the previous yearand prices are already down 17% from the average peak price of $1.9 million in last year’s second quarter, according to NAR.

San Francisco It had the largest U.S. price drop in the country: last quarter it was down 6.1% from a year earlier, and today its average price is US$1,230,000. San Francisco home prices are already down 21% in the fourth quarter from their average high price of $1,550,000 in the second quarter.

Among the most expensive cities that have seen prices drop are Anaheim, Los Angeles and Boulderin Colorado, with an estimated decline of 1.2% to 2%.

they also got off Bois, Idahowhere prices decreased by 3.4% compared to the previous year e Austin, Texaswith 1.3% less.

“It is produced a slowdown in house prices and is welcomeparticularly as the typical price of homes has increased 42% in the past three years,” Yun said, noting that these cost increases far outpace wage increases and consumer price inflation since 2019.

In pandemic, home prices in the United States have risen sharply. In many cities they have even increased too much. But with mortgage rates nearing historic lows, buyers have taken over the market.

However, the picture changed last year when mortgage rates skyrocketed due to the historic Federal Reserve campaign to control inflation. Then the purchases dropped dramatically. By the end of 2022, existing home sales were down nearly 18% from 2021 as prospective buyers left the market, according to NAR.