These 10 US real estate markets are cooling off the fastest: Here’s what to know if you’re a potential buyer – Henry’s Club

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After staggering growth during the pandemic, the US housing boisemarket is starting to cool down – and it’s happening fastest along the West Coast.

The fastest cooling real estate market is San Jose, California, a . According to new redfin analysisWhich ranked US metropolitan markets between February and May 2022 based on average selling prices, year-over-year inventory changes, and other factors.

Six of the top 10 markets are in California, three of which are in the Bay Area, and four other western cities are off the list.

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By comparison, Albany, New York, was the slowest-cooling housing market, followed by El Paso, Texas and Bridgeport, Connecticut, Redfin’s analysis found.

Melissa Cohn, regional vice president at William Revis Mortgage, said rising interest rates have triggered the “affordability factor” as one of the top reasons for the nationwide cooling.

In fact, expensive areas like Northern California, where homes can easily sell for $1 million to $1.5 million or more, have hit 30-year term mortgage rates closer to 6%, the report found.

For example, if you’re buying a million-dollar home with a 20% down payment, your monthly mortgage payment could be about $5,750 with a 6% interest rate, depending on taxes and homeowner’s insurance. . , which ranges from 3% to $1,400. Reported interest rate

10 Fastest Cooling US Housing Markets

According to Redfin, and their average selling price as of May 2022, here are the US markets that have cooled the most over the past year.

  1. San Jose, California – $1,560,000
  2. Sacramento, California – $610,000
  3. Oakland, California – $1,070,000
  4. Seattle, Washington – $850,000
  5. Stockton, California – $576,000
  6. Boise, Idaho – $550,000
  7. Denver, Colorado – $612,000
  8. San Diego, California – $875,000
  9. Tacoma, Washington – $575,000
  10. San Francisco, California – $1,620,000

10 Slowest Cooling US Housing Markets

According to Redfin, and their average selling price as of May 2022, the US market here has been the slowest in the past year.

  1. Albany, New York – $289,000
  2. El Paso, Texas – $238,000
  3. Bridgeport, Connecticut – $570,000
  4. Lake County, Illinois – $324,400
  5. Rochester, New York – $212,100
  6. New Brunswick, New Jersey – $465,000
  7. Cincinnati, Ohio – $265,000
  8. Akron, Ohio – $200,000
  9. New Haven, Connecticut – $310,000
  10. Virginia Beach, Virginia – $325,000

‘Cooling’ does not mean buyers will see a drop in prices

While growth may slow down in some markets, experts still do not expect a sharp drop in prices in most markets.

“One of the reasons we have this foamy, overheated market is simply a lack of inventory,” Cohn said.

To that point, in Redfin’s analysis, some increasingly cooling markets Have seen more inventory come to the market. For example, in Seattle, inventory is up 40.9% from last year.

Home prices are still rising, though more slowlyExpectations of one-year average home price growth fell from 5.8% in June to 4.4% in June, according to the Federal Reserve Bank of New York. consumer expectation survey,

Predicting a “healthy normalization” of the real estate market, Cohn said, “the pace of price increases will certainly slow significantly.”

One of the reasons we have this foamy, hot market is just a lack of inventory.

Melissa Kohno

Regional Vice President at William Revis Mortgage

Over the years many buyers have paid cash, with some buyers appraised, inspected or even waived see home in person,

However, changes in the market can give buyers more time to look at properties, make an offer and buy the right home, Kohn said.

What Do Cooling Markets Mean for Homeowners?