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by Adam Barnes | Oct. 04, 2022
Real estate prices are falling nationwide as mortgage rates surged past their highest point in more than a decade. But housing markets are cooling fastest in several California metros alongside pandemic-era boomtowns that were made possible by remote work.
A new analysis from the financial technology website SmartAsset analyzed the 100 largest metro areas in the U.S., comparing them across eight metrics to determine which real estate markets are cooling fastest.
SmartAsset’s analysis found that the housing market in Boise, Idaho, a thriving pandemic boomtown, is the fastest-cooling in the nation. In Boise, nearly twice as many homes are being listed than sold, and the median number of days a house sits on the market is 20, marking a 186 percent increase since the same time last year.
Separate research from the Federal Reserve Bank of San Francisco released late last month found increased demand for remote work accounted for 60 percent of persistent price hikes between November 2019 and November 2021. This led prices to soar to record highs over the same period.
The Austin-Round Rock-Georgetown, Texas metro area follows Boise in the second spot on SmartAsset’s list. This central Texas metro area has experienced the fourth largest decrease in demand and the 13th largest price reductions.
Median home prices in Austin currently stand at close to $578,000 while the median number of days a home sits on the market is 41, according to an analysis from the real estate company Redfin.
Phoenix-Mesa-Chandler, Ariz.; San Jose-Sunnyvale-Santa Clara, Calif.; and Las Vegas-Henderson-Paradise, Nev., hold the final three spots in the top five of SmartAsset’s list of fastest-cooling real estate markets.
The Phoenix metro boasts the highest percentage of listed homes with price cuts, while the Silicon Valley metro, San Jose-Sunnyvale-Santa Clara has experienced more than a 43 percent decrease in the number of houses sold since the same time in 2021.
In the Las Vegas metro, the number of houses sold monthly has fallen by about 44 percent over the past year.
Nationwide, close to 26 percent of homes listed experienced price reductions in August, up from 16 percent in 2021. Additionally, SmartAsset found that the average time a home stays on the market is 13 days.
Here are the 10 fastest-cooling real estate markets, according to SmartAsset.
1. Boise, Idaho
2. Austin-Round Rock-Georgetown, Texas
3. Phoenix-Mesa-Chandler, Arizona
4. San Jose-Sunnyvale-Santa Clara, California
5. Las Vegas-Henderson-Paradise, Nevada
6. Salt Lake City, Utah
7. North Port-Sarasota-Bradenton, Florida
8. San Diego-Chula Vista-Carlsbad, California
9. Provo-Orem, Utah
10. Stockton, California
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Which housing markets are cooling the fastest? – The Hill
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