10 Markets Where Home Prices Are Falling the Most

After years of a red-hot housing market, something “inconceivable” now is happening, according to Realtor.com: Home prices are falling.

Higher mortgage rates are tanking demand, as more buyers find themselves unable to afford today’s still-elevated home prices. As a result, prices are slipping more than would be expected during the normal “cooling off” period that occurs every autumn, Realtor.com says.

Home prices remain up 14% year over year but are now down from their June peak. And in some markets, the decline is especially pronounced.

Following are the markets where Realtor.com says prices fell most from June to September.

10. Spokane, Washington

This metro area’s median home list price as of September: $449,900

Change in this metro area’s median home list price since June: 7.4% decrease

The housing market in Spokane has cooled considerably since the spring. As real estate agent Gabe Modderman recently explained to a local television station:

“In May of this year, 69 percent of homes were selling above asking price. Right now, we’re seeing about 36 percent of homes selling above asking price.”

9. Durham, North Carolina

This metro area’s median home list price as of September: $460,000

Change in this metro area’s median home list price since June: 7.5% decrease

In the first half of the year, out-of-state investors were adding fuel to a housing market that already was on fire.

But now, the flames appear to be dying down in Durham.

8. Stockton, California

This metro area’s median home list price as of September: $581,725

Change in this metro area’s median home list price since June: 7.7% decrease

Signs of a cooling in the Stockton housing market have been evident for some time.

A recent study found that more than one-third of the homes on the market in Stockton over the past year saw a cut from their original asking prices.

7. Las Vegas

This metro area’s median home list price as of September: $460,000

Change in this metro area’s median home list price since June: 7.9% decrease

A couple of weeks ago, we reported that Las Vegas was among the “10 Housing Markets Where Bidding Wars Are Disappearing.”

Like many other markets on this list, a crash is not imminent, but balance seems to be returning between buyers and sellers.

6. Denver

This metro area’s median home list price as of September: $625,000

Change in this metro area’s median home list price since June: 8% decrease

The Mile High City has seen a big influx of new residents in recent years, and that sent home prices much higher. But now, homes are taking longer to sell.

Libby Levinson-Katz, chair of the Denver Metro Association of Realtors’ market trends committee, recently wrote that after years of a torrid sellers’ market, recent data indicates Denver is “moving toward a balanced market.”

5. Ogden, Utah

This metro area’s median home list price as of September: $532,500

Change in this metro area’s median home list price since June: 8.6% decrease

Local real estate agents say they are still seeing robust activity, even if it is down a bit from 2021.

However, the numbers don’t lie, and Ogden is among the cities where home prices are falling.

4. Charleston, South Carolina

This metro area’s median home list price as of September: $500,000

Change in this metro area’s median home list price since June: 8.6% decrease

Cindy Creamer, president of South Carolina Realtors, tells the Charleston Regional Business Journal that housing markets are in the process of “normalizing” in South Carolina:

“Yes, it’s cooling off compared to 2020 and 2021, but it is still a demand-driven market, unlike the late 2000s when we were dealing with a supply driven market. I believe we need more inventory at various price points, especially on the first-time buyer side.”

3. Palm Bay, Florida

This metro area’s median home list price as of September: $379,995

Change in this metro area’s median home list price since June: 8.9% decrease

Researchers at Florida Atlantic University and Florida International University recently noted that five of the 10 most overvalued housing markets in the U.S. can be found in the Sunshine State.

That includes the Palm Bay-Melbourne market at No. 4, overvalued by 60.42%.

2. Phoenix

This metro area’s median home list price as of September: $493,500

Change in this metro area’s median home list price since June: 9.9% decrease

The housing market’s temperature is dropping fast in the desert. As we reported last month, Phoenix is among the “10 Housing Markets That Are Cooling Fastest.”

1. Austin, Texas

This metro area’s median home list price as of September: $558,275

Change in this metro area’s median home list price since June: 10.3% decrease

The Austin housing market was heavily tilted in favor of sellers the past couple of years. But now, things are coming into balance in the Texas capital. As Debbie Novelli, an associate broker with Realty Austin, told the Austin American-Statesman:

“The pent-up demand from the pandemic has pretty much been satisfied. Right now, we are seeing a reset to previous years with increasing inventory for buyers, less multiple offers, and sales prices mostly at or below list prices and we are seeing more price reductions, especially when the initial list price was inflated.”