Home prices in some US cities are finally cooling off, with Seattle's housing market slowing down faster than any other in the country. This is good news for buyers who have been priced out of the market in recent years, as they may finally have a chance to purchase a home.
According to a report by real estate company Redfin, the 10 fastest-cooling markets are almost entirely in the West. Seattle, Las Vegas, and the three California cities of San Jose, San Diego and Sacramento are leading the way in terms of prices, price drops, supply, pending sales, sale-to-list ratio and speed of home sales.
The markets with the biggest price drops all saw double-digit declines in prices and sales volume compared to the previous year. This is a drastic change from the record price hikes seen during the pandemic housing boom, when people were working remotely and there was a race for space.
In Seattle, the number of homes sold during a two-week period in August was 34% lower than the same period a year earlier. The typical home sold for 5% more than last year, compared to a 23% year-on-year price increase just six months prior. Month over month, the typical home sold for 2% less in August than a month earlier.
According to a recent study, Seattle is one of the fastest cooling real estate markets in the United States. This is good news for buyers who have been priced out of the market in recent years. Prices are still high, but they are expected to continue to fall in the coming months.
According to Tzahi Arbeli, a Las Vegas Redfin agent, the housing market has changed very quickly in buyers’ favor. Arbeli stated that this shift has made it a great time to buy a home in Las Vegas.
Home prices in Las Vegas have fallen 3% month-over-month in August, following a period of significant price increases during the pandemic. This trend is being seen in other cities where prices had spiked during the pandemic, indicating that the market is beginning to correct itself.
Despite downward pressure on prices, rising inventory and longer time to agree on a sale, San Jose, Oakland, San Diego and Seattle remain among the most expensive places in the country. In August, the median price of a home in San Jose reached $1.4 million, while homes in Oakland sold at a median price of $910,000.
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