The Triangle LivingThe Triangle Living
  • Home
  • Latest News
  • Real Estate
  • Business
  • RTP
  • Chatham Park
  • Food and Drink

Subscribe to Updates

Get the latest Real Estate, Finance news directly to your inbox.

What's Hot

Four New Cafes Shake Up the Durham Coffee Scene

September 28, 2023

Raleigh luxury homes in high demand

September 27, 2023

Cassie Hill – Chatham Park Homes

September 21, 2023
Facebook X (Twitter) Instagram
Facebook X (Twitter) YouTube Telegram
The Triangle LivingThe Triangle Living
Consult Subscribe
  • Home
  • Latest News
  • Real Estate

    Raleigh luxury homes in high demand

    September 27, 2023

    Average U.S. mortgage rate climbs to highest level in 21 years

    August 18, 2023

    Why Raleigh is the Ideal City for Real Estate Investors

    August 11, 2023

    Raleigh Real Estate Market Forecast: What to Expect in the Next 5 Years

    August 11, 2023

    Navigating the Durham Real Estate Market: Tips for Buyers and Sellers

    August 11, 2023
  • Business
  • RTP
  • Chatham Park
  • Food and Drink
The Triangle LivingThe Triangle Living
Home » The 10 Cities Where the Housing Market Is Cooling the Fastest
Finance

The 10 Cities Where the Housing Market Is Cooling the Fastest

Press RoomBy Press RoomJuly 8, 2022No Comments5 Mins Read1 Views
Facebook Twitter Telegram Tumblr Reddit WhatsApp
Share
Facebook Twitter LinkedIn Pinterest Email

The West Coast dominates the list, with six cities in California alone.

After two years of record-breaking growth, the housing market is finally turning around — especially on the West Coast.

San Jose, California, is the market that’s cooling off the quickest, according to a new analysis from real estate brokerage Redfin. All of the top 10 markets in Redfin’s list are along the West Coast or in western mountain states, including six entries in California.

To compile its ranking, Redfin analyzed the 100 largest metropolitan areas in the United States and looked at several measures of demand and competition for housing — including median sale prices, changes in inventory and price drops — between February and May of 2022.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
In the market for a new home? Find out how much you can afford today.
A Mortgage Expert can clear up your doubts and give you the necessary information to take this big step. Click on your state and make it happen.
HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexas

View Today’s Rates

Buying a home has increasingly become unaffordable almost everywhere, so what makes these cities stand out? Well, the supply of homes in San Jose has dropped while the pace of home sales has decreased, signaling a serious slowdown in the city’s real estate market. Meanwhile, the median sale price of a home in San Jose hit an eye-watering $1.56 million — up 18% from a year ago, according to Redfin.

Here are the 10 housing markets that are cooling off the fastest, according to Redfin.

  1. San Jose, California
  2. Sacramento, California
  3. Oakland, California
  4. Seattle, Washington
  5. Stockton, California
  6. Boise, Idaho
  7. Denver, Colorado
  8. San Diego, California
  9. Tacoma, Washington
  10. San Francisco, California

Seattle and Boise are also among the top five markets where home prices are likely to fall, according to CoreLogic.

Ads by Money. We may be compensated if you click this ad.AdAds by Money disclaimer
Buy your new home with more convenience and less hassle
A Mortgage Expert can lend you a hand for a smoother process. Your dream home is possible. Click below to make it happen.

Get Started

Why is the housing market cooling off?

Redfin’s experts attribute the ongoing slowdown in these markets (and many others across the country) to soaring mortgage rates, which began steadily climbing when the Federal Reserve raised interest rates earlier this year. The average rate on a 30-year fixed-rate mortgage is 5.3%, according to data from Freddie Mac. That’s down from a few weeks ago but significantly higher than at the end of last year.

“Higher rates make homes even more expensive than they used to be,” San Francisco Redfin agent Joanna Rose said in a blog post.

The typical mortgage payment on a home priced at $450,000 with a mortgage rate of 6% is now $2,600, according to Redfin. That’s $700 more than when rates were 3%. Add those extra borrowing expenses to a 20% spike in home prices over the past year and you have a recipe for sky-high costs.

Rose also said it’s become more difficult for people to afford homes because of the stock market, which entered a bear market last month, and inflation, which is running above 8%. Not to mention the looming threat of a recession.

Experts believe that home prices will eventually fall once enough buyers are sitting on the sidelines, but that process will be slow. Even though housing inventory is now rising, there still aren’t enough properties on the market to overcome a persistent shortage.

“Inventory levels still need to rise substantially – almost doubling – to cool home price appreciation and provide more options for home buyers,” Lawrence Yun, Chief Economist at the National Association of Realtors, said in a news release last month.

Newsletter
Money Moves
Every Saturday, Money real estate editor Sam Sharf dives deep into the world of real estate, offering a fresh take on the latest housing news for homeowners, buyers and daydreamers alike.

By clicking “Sign Up” I agree to receive newsletters and promotions from Money and its partners. I agree to Money’s Terms of Use and Privacy Notice and consent to the processing of my personal information.
Newsletter
Subscribe successful!
You will now receive Money’s newsletter at
Reply anytime to let us know how we can improve. Enjoy!
Make sure we land in your inbox, not your spam folder. We just sent you a welcome email. Sometimes email clients send our first email to a spam or promotions folder. If you don’t see us in your inbox, check these folders, then drag and drop the welcome email into your inbox.

More from Money:

5 Cities Where Home Prices Are Most Likely to Drop Soon

4 Tips to Avoid Overpaying in Today’s Changing Housing Market

10 Cities Where Homes Are Selling in 15 Days or Less

Sarah Hansen

Sarah Hansen is a senior writer at Money covering all things personal finance. Previously, she covered economic policy and capital markets on the breaking news desk at Forbes. She completed her master’s degree in business and economic reporting at New York University. Before becoming a journalist, Sarah worked as a paralegal specializing in corporate compliance.

Read the full article here

Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
Previous ArticleCoalition seeks volunteers to test mileage-based user fees in NC
Next Article The 5 Biggest Risks People Face in Retirement, Ranked

Related Posts

Unlimited Vacation Is Hot Right Now. But Is It Actually a Good Job Perk?

July 12, 2022

5 Signs the Housing Market Is Finally Cooling Down

July 12, 2022

Amazon Prime Day’s Best Deals: These Sales Are Live Now

July 11, 2022

Millions of State Stimulus Checks Are Coming Soon — But Will They Make Inflation Worse?

July 11, 2022

Want to Boost the Value of Your Home? Plant a Tree — Right Now

July 11, 2022

The 5 Biggest Risks People Face in Retirement, Ranked

July 8, 2022
Add A Comment

Leave A Reply Cancel Reply

Top Articles

Raleigh luxury homes in high demand

September 27, 2023

Cassie Hill – Chatham Park Homes

September 21, 2023

Shaw University Expands Campus and Reach to RTP in Collaboration with Research Triangle Foundation of North Carolina

September 19, 2023

Subscribe to Updates

Get the latest Real Estate, Finance news directly to your inbox.

Advertisement

Your Top Source for the latest Real Estate, Finance, Business and general news about North Carolina, Follow us to get the latest news from the most trusted sources.

We're social. Connect with us:

Facebook X (Twitter) Instagram Pinterest YouTube
Top Insights

Top UK Stocks to Watch: Capita Shares Rise as it Unveils

January 15, 2021
8.5

Digital Euro Might Suck Away 8% of Banks’ Deposits

January 12, 2021

Oil Gains on OPEC Outlook That U.S. Growth Will Slow

January 11, 2021

Subscribe to Updates

Get the latest Real Estate, Finance news directly to your inbox.

© 2023 The Triangle Living. All rights reserved.
  • About
  • Privacy Policy
  • Terms and Conditions
  • Advertise
  • Contact

Type above and press Enter to search. Press Esc to cancel.