After unprecedented demand in 2021 and 2022 and surging price rises, the property market is currently in a period of stabilisation. As a result, values have started to experience more moderate increases or, in some cases, decreases. In this article, we look at where US real estate prices are falling the fastest.
Locations with a cooling housing market
Countrywide statistics usually hide substantially different regional and local trends. So, while house prices in some parts of the US are still on the rise, in others, they’re falling. A recent survey from SmartAsset analysed the markets with the fastest rate of house price drops.
The company looked at values in 263 across the country and found that trends were far from uniform.
San Francisco top of the chart
According to SmartAsset, San Francisco is the location where US real estate prices have plummeted the most. House values have fallen by over 13% in the last year. Palo Alto and Dublin, also in California, come close behind. Consequently, average house prices in San Francisco stand at around US$1.27 million.
Drops on the northwest coast
The states of Washington and Oregon have also seen drastic reductions in house prices over the last year. For example, in Kirkland, Bellevue and Redmond, values skydived by 11% to 12%. Seattle fared slightly better, although house prices in this city fell by 8%.
Texas also affected
The report found that house prices in some parts of Texas have dropped by almost 10% in 12 months. Leander, Pflugerville and Cedar Park saw their real estate values drop by 9.77%, while in Austin, the fall stood at 8.12%.
Florida bucks the trend for US real estate prices
However, the fall of house values was far from uniform, and many parts of the US saw prices rise. The Sunshine State is a case in point, and real estate in Florida bucked the trend the national trend. Just Cape Coral and Palm Coast experienced a downward turn.
However, both saw moderate drops. As a result, Florida metros don’t enter the table until the 75th position, held by Cape Coral. In this area, prices have dropped by 5.17% and average US$380,889. Palm Coast, the only other Florida metro in the listing, stands in 200th place after a negligible decrease (down 1.93%) in house prices.
High demand lies behind the continued rise in Florida house prices and despite higher inventory levels, supply still fails to keep up.