Where are housing prices dropping the fastest in the United States? They tend to be places where prices were zooming up not long ago:
Top 10 cities where housing markets are cooling the fastest in 2022
- Seattle, WA
- Las Vegas, NV
- San Jose, CA
- San Diego, CA
- Sacramento, CA and Denver, CO (tie)
- Phoenix, AZ
- Oakland, CA
- North Port, FL
- Tacoma, WA
This raises multiple questions:
- While housing values are going down, how long before they stabilize and head back up? After all, these are places with higher demand and rising prices over time. At least, that is what a lot of homeowners are planning on.
- How are residents of these places feeling? American property owners like it when property values are going up, even if they are not ready to sell. When prices go down, I assume they are not feeling as good. (This could be true even if housing values today are higher than they were not long ago; the immediate feeling of loss is strong.)
- Is a local market with higher highs and lower lows in housing prices one where more growth is happening? Looking at the list above, it would appear these are fairly popular places with a steady demand for housing. The alternative to the yo-yoing in the housing market is a market where prices do not rise much or lose much. Such markets also exist in the United States, but they are less desirable.