25 hot housing markets that are finally starting to cool
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25 hot housing markets that are finally starting to cool
An aerial view of Florida homes near water and surrounded by palm trees.
If you’ve wanted to buy a home but have been priced out of the housing market, the pendulum between a seller’s and a buyer’s market may be swinging in your favor.
The real estate market has had a tumultuous few years since 2020. At the onset of the pandemic, sales plunged sharply, as COVID-19-related uncertainty scared people away. But in June 2020, people jumped back into the market, looking for yards and larger homes in the suburbs, which were better suited for riding out the pandemic. Existing inventory plummeted, and constructing new homes was limited as supply chain issues and labor shortages meant that builders couldn’t keep up with demand. Prices have soared nationwide since autumn 2020— breaking historic records along the way—but now previously hot markets are finally showing signs of a slowdown.
Agent Advice examined September listing data from Realtor.com to see which major metro areas are seeing the largest share of price reductions. This analysis was limited to the 250 largest metropolitan areas, including the main city and surrounding towns and suburbs. Price reductions are the number of listings that have had their list price dropped within that area during the month of September. Reductions are a sign sellers may be expecting too much for their properties, especially as the Fed’s increased interest rates have begun to put pressure on buyers.
The median list price for a home in the U.S. was $427,000 in September 2022, down slightly from a record high of $450,000 in June of the same year, according to Realtor.com listing data. However, home prices are still up by double digits from the same time a year ago.
Many metro areas on this list are areas in the Western U.S. that saw rapid price growth spurred by the COVID-19 pandemic, as people in work-from-home situations opted to leave densely populated, comparatively expensive metros for smaller, more affordable cities. In Austin, for example, a Texas-sized slowdown could be in the offing. While median housing prices are still increasing—up 17.4% from the previous year in the second quarter to $546,000—pending sales are down 12%, and houses are staying on the market a few days longer. Inventory is also rising to levels not seen since November 2019.
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#25. Lakeland, Florida
A beautiful stone terrace surrounded by gardens and water in Lakeland, Florida.
– September active listings: 2,749
– Percent of active listings with reduced prices: 58.9%
– Median list price in August: $359,995
California Droning // Shutterstock
#24. Vallejo, California
Sunset over Vallejo casting orange light over the calm Napa River punctuated by a draw-bridge and a yacht club.
– September active listings: 787
– Percent of active listings with reduced prices: 59.0%
– Median list price in August: $623,450
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#23. Olympia, Washington
Purple sunset over Olympia, Washington.
– September active listings: 534
– Percent of active listings with reduced prices: 59.2%
– Median list price in August: $542,495
Jacob Boomsma // Shutterstock
#22. Greeley, Colorado
Greeley, Colorado from above in Autumn.
– September active listings: 930
– Percent of active listings with reduced prices: 60.2%
– Median list price in August: $522,500
Sean Pavone // Shutterstock
#21. Durham, North Carolina
Durham, North Carolina skyline at sunset.
– September active listings: 1,224
– Percent of active listings with reduced prices: 60.5%
– Median list price in August: $460,000
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#20. Spokane, Washington
Spokane, Washington aerial view of downtown.
– September active listings: 1,389
– Percent of active listings with reduced prices: 60.6%
– Median list price in August: $475,000
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#19. Charlotte, North Carolina
Downtown Charlotte, North Carolina homes and skyline on a sunny day.
– September active listings: 5,424
– Percent of active listings with reduced prices: 60.8%
– Median list price in August: $419,950
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#18. Knoxville, Tennessee
The Great Smoky Mountains with the Knoxville, Tennessee skyline in the foreground.
– September active listings: 1,667
– Percent of active listings with reduced prices: 61.2%
– Median list price in August: $422,450
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#17. Reno, Nevada
Reno, Nevada homes and downtown in a mountainous landscape.
– September active listings: 1,613
– Percent of active listings with reduced prices: 61.8%
– Median list price in August: $622,225
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#16. Charleston, South Carolina
Beautiful Charleston, South Carolina homes on the water.
– September active listings: 2,247
– Percent of active listings with reduced prices: 62.0%
– Median list price in August: $500,000
Kristi Blokhin // Shutterstock
#15. Palm Bay, Florida
A highway with a sign leading into Palm Bay, Florida.
– September active listings: 2,049
– Percent of active listings with reduced prices: 62.2%
– Median list price in August: $379,995
Trong Nguyen // Shutterstock
#14. Dallas, Texas
Urban sprawl from above in the Dallas, Texas area.
– September active listings: 16,529
– Percent of active listings with reduced prices: 62.7%
– Median list price in August: $453,530
Emmy Bersa // Shutterstock
#13. Sacramento, California
Three story row homes from the street.
– September active listings: 4,477
– Percent of active listings with reduced prices: 62.7%
– Median list price in August: $600,000
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#12. Indianapolis, Indiana
Indianapolis, Indiana cityscape and condos by the water.
– September active listings: 3,621
– Percent of active listings with reduced prices: 62.8%
– Median list price in August: $299,996
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#11. Tucson, Arizona
Tucson, Arizona skyline with mountains in the background.
– September active listings: 2,367
– Percent of active listings with reduced prices: 63.9%
– Median list price in August: $382,483
Lynne Neuman // Shutterstock
#10. Jacksonville, Florida
Tall beach houses with porches.
– September active listings: 5,595
– Percent of active listings with reduced prices: 65.1%
– Median list price in August: $407,500
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#9. Tampa, Florida
Long rows of beach homes with the Tampa, Florida skyline in the background.
– September active listings: 10,090
– Percent of active listings with reduced prices: 67.9%
– Median list price in August: $429,450
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#8. Provo, Utah
The city of Provo, Utah in a low valley surrounded by mountains.
– September active listings: 2,366
– Percent of active listings with reduced prices: 70.3%
– Median list price in August: $555,000
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#7. Colorado Springs, Colorado
The city of Colorado Sprints, Colorado in the foothills.
– September active listings: 2,431
– Percent of active listings with reduced prices: 70.9%
– Median list price in August: $504,475
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#6. Austin, Texas
An aerial view of large homes surrounded by greenery.
– September active listings: 8,506
– Percent of active listings with reduced prices: 71.8%
– Median list price in August: $558,275
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#5. Ogden, Utah
A historic looking main street in the evening with mountains in the background.
– September active listings: 1,888
– Percent of active listings with reduced prices: 73.4%
– Median list price in August: $532,500
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#4. Salt Lake City, Utah
The sprawling Salt Lake City, Utah at sunset.
– September active listings: 2,729
– Percent of active listings with reduced prices: 75.1%
– Median list price in August: $579,999
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#3. Denver, Colorado
Homes in the foothills with Denver, Colorado downtown in the background.
– September active listings: 6,512
– Percent of active listings with reduced prices: 75.3%
– Median list price in August: $625,000
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#2. Boise, Idaho
Boise City, Idaho downtown aerial view.
– September active listings: 4,063
– Percent of active listings with reduced prices: 76.8%
– Median list price in August: $549,900
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#1. Phoenix, Arizona
Camelback Mountain with Phoenix, Arizona homes in the forefront.
– September active listings: 16,778
– Percent of active listings with reduced prices: 86.3%
– Median list price in August: $493,500
This story originally appeared on Agent Advice and was produced and
distributed in partnership with Stacker Studio.
