According to an investigation by Realtor.com, although house prices have fallen in all cities in the United States, there are some cities where the difference has been more marked since June
For several weeks it has been reported that in different cities of the United States, house prices are falling, hand in hand with increases in interest rates on loans granted by financial institutions. According to research from Realtor.com, the drop has been seen much more abruptly in Austin, Texas, where prices have dropped by as much as 10%.
One reason this is happening is because the number of available properties is growing in Austin, where the median home price in September was $558,275.
It is not the only city where prices have fallen, according to the Realtor.com report. For example, in Phoenix, home prices have fallen nearly 10% since June. Other cities with significant casualties are:
-Palm Bay, Florida (8.9% less since June)
-Charleston, South Carolina (8.6%)
-Ogden, Utah (8.6%)
-Denver, Colorado (8%)
-Las Vegas, Nevada (7.9%)
-Stockton, Calif. (7.7%)
-Durham, North Carolina (7.5%)
-Spokane, Wash. (7.4%)
Although it is in these cities where the drop in prices has been most notable, the reality is that the prices of homes throughout the United States have been going down in terms of home sales. “Los Angeles, Sacramento, and San Francisco in California are also seeing declines, with each city posting a drop of 3.2% or more over the summer,” according to a Zillow report.
However, even with falling prices, home costs today are still higher than they were a year ago, Realtor.com reported. Regarding mortgage rates, they are currently at their highest point in the last 16 years, and today they are double what they were in January 2022. Currently, the average rate of a 30-year mortgage is of 6.6%.
“As interest rates continue to rise, we expect mortgage rates to rise as well, cooling demand for homes and thus potentially contributing less to inflation pressures in the year ahead,” Wells analysts said. Fargo Investment Institute in a report.