- Property prices are down in major metropolitan regions from just six-months ago
- Home prices in some regions are down over $75,000 from their recent peaks
Housing market’s feeding frenzy is over
Home prices plunge across the US: Remember the feeding frenzy that swept the property market in the spring of 2022? When bidding wars were common and long lines formed outside open houses? And houses sold waaaay above asking prices? Many would-be home buyers were upset when they were out-bid and the property went to someone else? Well, chances are they are not upset anymore. As home prices dive, many home buyers are left holding the bag (or house, in this case).
Home prices plunge 7.4% on average
ApexaVision analyzed Realtor.com’s pricing data from the May-June-July period and compared that to prices now. Of the 15 major metropolitan statistical (MSA) areas we looked at, prices are down in every region with no exceptions. On average, property listing prices plummeted by $45,314 from their peaks. In percentage terms, home prices plunged by 7.4% from the peak on average.
Use ApexaVision.com’s real estate dashboard to check out more data, analysis, charts and graphs on housing inventory trends, regional population growth, and rental trends. Run scenarios on different home prices and interest rate assumptions.
Losing a year’s worth of salary
The largest decline in dollar terms is in the Austin, Round Rock area in Texas. Austin’s average listing price in October is $78,000 lower compared to the peak. In Seattle and Denver MSAs, average listing prices sunk near $75,000 compared to the peak in June. Average property listing price in the Phoenix area slid by $64,000. Basically if you purchased a house during the peak in Spring/Summer time this year, you could easily lost what someone makes in a year. Ouch.
Unfortunately, there isn’t much good news in the short term. But in the long-term, as long as US population continues to increase, that should be favorable for housing prices. Moreover, we should reach peak interest rates by next year (2023). If interest rates drops it should also be supportive for home prices.