These are the 10 fastest-cooling real estate markets in the US – The Hill

Story at a glance


  • An analysis by real estate company Redfin ranked the nation’s 100 most populous metro stations on several metrics, including prices, price cuts and supply, between February and August 2022 to gauge how quickly housing markets are cooling.

  • The fastest-cooled market is located in Seattle.

  • In Seattle, 34 percent fewer homes were sold in two weeks in August than a year earlier, while the average home sold 5 percent less per square foot in August than a year earlier.

A new analysis shows that the real estate market is cooling faster primarily among West Coast cities already hit by the lingering affordability crisis, with Seattle leading the way, according to a new analysis.

An analysis by real estate company Redfin ranked the nation’s 100 most populous metro stations on several metrics, including prices, price cuts and supply, between February and August 2022 to gauge how quickly housing markets are cooling.

“These are all places where homebuyers are feeling the pinch of soaring home prices, soaring mortgage rates, and inflation very sharply,” Daryl Fairweather, chief economist at Redfin, said in a media statement. Last year’s record low rates made it unsustainably hot.”

“The good news is that the slowdown weakens competition and gives those who can still buy more bargaining power,” Fairweather added.

In Seattle, 34 percent fewer homes were sold in two weeks in August than a year earlier, while the average home sold 5 percent less per square foot in August than a year earlier. This compares with a 23 percent year-over-year increase in February, according to the analysis.

Rising mortgage rates, which have risen to more than 6 percent this month, have also cooled Seattle’s fast market. According to Redfin, monthly mortgage payments on a median-priced home in Seattle are over $4,400 with today’s mortgage rates at 6 percent — up from $3,300 earlier this year.

The Federal Reserve on Wednesday raised its benchmark interest rate – for the fifth time since March. This can make buying a home more expensive.

Seattle followed in the rankings with Las Vegas, where price per square foot (PPSF) fell 14.5 percentage points year on year. The median sale price in Las Vegas in August was $416,000, down 3 percent from July.

“The housing market has changed very quickly in favor of buyers,” said Las Vegas Redfin agent, Tzachi Arbeli. “Not only have prices come down in recent months, but sellers are seeing the market calming down and they are more open to negotiating prices, making concessions and paying closing costs.

The real estate company noted that some of the faster-cooling markets, such as Las Vegas and Sacramento, have become relocation hotspots as workers have moved remotely to escape more expensive markets. This caused housing prices to rise dramatically.

Three California cities – San Jose, San Diego, and Sacramento – outperform Redfin’s five largest refrigerated residential markets.

The price of a typical home in Sacramento has increased 33 percent since the start of the pandemic, from $430,000 to $570,000.

Here are the 10 fastest-cooling housing markets in the US

1. Seattle

2. Vegas

3. San Jose

4. San Diego

5. TIE: Sacramento and Denver

7. Phoenix

8. Auckland

9. Northport, Florida.

10. Tacoma, sn.

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