Home prices are falling at four former hotspots as near-record real estate costs drive away buyers.
Three of the metropolitan areas where prices are falling are in Texas, according to new perspectives from the real estate company Redfin.
The sudden drop in values comes after millions of Americans fled to the state during the Covid-19 pandemic, causing prices to skyrocket.
In Austin, home sales prices have decreased 2.9 percent year over year.
The so-called pandemic “boom town” has seen an influx of people in recent years, in part due to a thriving tech industry in the city.
Home prices in San Antonio and Fort Worth have fallen 1.2 percent, according to the data, while sales prices in Portland, Oregon, are down 0.9 percent.
Nationally, price drops are at their highest level since November 2022, according to Redfin, suggesting other areas could also see cost drops soon.
In Austin, home sales prices have decreased 2.9 percent year over year, according to Redfin.
Across the United States, home prices rose 4.4 percent from a year ago to hit an all-time high during the four weeks ending June 2, according to Redfin.
The average sales price during the period was $392,200.
But there are early indicators that national price growth could soften soon: One in 15 home sellers will reduce their asking price during that period.
In Austin, home prices fell 2.9 percent year over year through earlier this month.
Several major tech companies, including Tesla and Oracle, have moved their headquarters to the city in recent years, and low taxes attracted an influx of well-paid workers during the pandemic.
According to separate data from earlier this year, the Texas state capital is home to the fastest-growing population of millionaires in the United States.
In the last decade, the number of millionaires in the city has grown 110 percent to 32,700.
This boom has priced out some homebuyers in the city, causing prices to now begin to fall.
Prices in San Antonio and Fort Worth have also increased due to an influx of residents seeking a lower cost of living, a better quality of life and the lack of income taxes.
TO survey Conducted by real estate company Zillow earlier this year found that the Lone Star State saw the second-highest number of new residents among the 50 states in 2022, and had the most Gen Z move-ins.
Meanwhile, Portland, Oregon, saw the fourth-largest year-over-year price drop, according to Redfin.
In a reversal of growth trends, more people left Oregon and moved to the state in 2022.
According to Redfin, the typical active listing has been on the market for 46 days, a 2.3 percent year-over-year increase.
This suggests that home listings are becoming stale faster than they were a year ago, as high mortgage rates and housing costs are causing potential buyers to back off.
Fort Worth home prices have fallen 1.2 percent year over year
Prices in San Antonio were driven up by an influx of residents seeking a lower cost of living, a better quality of life and the lack of income taxes.
The weekly average mortgage rate rose above 7 percent again last week, according to data from government-backed lender Freddie Mac.
This brought the average monthly housing payment in the United States to a near-record level of $2,838.
“There’s no getting around the fact that buying a home is expensive right now, but some people are having luck negotiating with sellers,” said Bonnie Phillips, a Redfin agent in Cleveland.
“I’ve seen buyers get a house for less than the asking price when it’s been on the market for a few weeks.”
Separate data from Redfin earlier this year found that homes in Florida hot spots are also falling in price as supply increases.
On the state’s west coast, the number of properties on the market is increasing and homes are taking much longer to sell, the real estate company found.