Where home prices are falling most

By Stacker

Published August 8, 2023 2:19 AM

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Where home prices are falling most

A pair of two-story houses in suburban neighborhood on a partly cloudy day.

Larger housing trends in the U.S. as a whole don’t necessarily inform hopeful homebuyers or current homesellers about their markets. Some locales offer the advantage – or disadvantage – of bucking nationwide trends. For example, while home prices increased by at least 20% over the last year in some places, they also decreased substantially in other parts of the U.S., settling from pandemic highs.

In order to help hopeful homebuyers and current homesellers take stock of their local housing market, SmartAsset analyzed typical home values for 263 cities where the housing market is cooling, ranking them by the size of the pullback.

Key Findings

Home prices decreased across the board in Washington and Oregon. Some cities – like Kirkland, Bellevue, Redmond, and Sammamish – saw prices drop 11% to 12%. In Seattle, prices dropped by 8%. Home prices also declined across Oregon, including in Bend, Portland, Beaverton, Hillsboro, Eugene, Gresham, Salem and Medford.
Texas cities saw as much as 9.77% declines in home values. Leander, Pflugerville, and Cedar Park all had greater than 9% decreases. Austin homes also declined by 8.12%, while other cities including Fort Worth and Dallas saw smaller declines.
San Francisco home prices came down by more than 13%. Two other California cities, Palo Alto and Dublin, saw similar drops. This puts home values in Dublin and San Francisco at about $1.27 million now, while Palo Alto homes average $3.16 million.
Home prices in the Phoenix area declined by 4.78% in the last year. As other Arizona areas saw mild growth, Glendale, Mesa, Avondale, Chandler, Peoria, Scottsdale, Tempe, Goodyear and Surprise home prices fell. Buckeye saw the largest price decline at an average of 7.69%.
Most Florida home prices went up, except in these two cities. These two Florida cities saw lower home prices this year. Cape Coral homes had more than a 5% drop in value over the past year, with the typical home value falling from $402,000 to $381,000. Palm Coast homes declined by nearly 2% in value, with a typical home value of $359,000 in May 2023. Meanwhile, homes in 37 other Floridian cities increased in value.
Only three northeast cities saw lower home prices this year. Pittsburgh and Philadelphia home values decreased by 1.4% and 1.1% since 2022, respectively. The typical home value in each is just over $221,000. Meanwhile, the price cut on Mount Vernon, NY homes was just 0.58%, to roughly $500,000.

SmartAsset

Cities With the Largest Drops in Home Price

A table listing 20 cities where home prices are cooling, with metrics about those cities’ housing markets.

Dublin, CA

Home values in this city of 72,000 residents averaged $1,264,563 in May 2023. This followed a massive drop of 15.37%, or $230,000, from the prior year.

San Francisco, CA

San Francisco is the largest city in the top 10 of this study with roughly 815,000 people. The typical home value went down from $1,468,783 in 2022 to $1,273,463 this year – a 13.30% drop.

Palo Alto, CA

Palo Alto’s population is relatively small, with 66,666 residents. But home prices here are atypically expensive, costing $3.16 million in May of 2023. Even so, they decreased by 12.82% year over year.

Fremont, CA

Fremont has roughly 228,000 people. And the typical home here costs $203,000 less than last year. It now averages $1,384,781 after falling 12.77%.

Kirkland, WA

Kirkland home prices average $1,088,159 as of May 2023. When compared with the previous year, the typical value declined by 12.37%, or about $153,000.

Oakland, CA

Oakland has roughly 434,000 residents. Home prices fell by 12.22% in the past year to $814,053. Of the top 10 cities, Oakland is the only one with a home value under $1 million.

Pleasanton, CA

Pleasanton homes average $1.55 million going into the summer of 2023. This is down from $1.76 million in May 2022, a 12.11% decline.

San Mateo, CA

This suburb of San Francisco has about 102,000 residents. Home prices here dropped 12% from $1.71 million in May 2022 to $1.50 million in May 2023.

Bellevue, WA

Located East of Seattle, Bellevue’s home prices declined by 11.99% since May 2022. In just 12 months, the typical value fell from $1.46 million to $1.28 million in May 2023.

Redmond, WA

Just eight miles East of Bellevue, Redmond is home to roughly 76,000 people. Homes here saw a slightly smaller decline of 11.60% since 2022. They now average $1.22 million after a $160,000 drop.

Data and Methodology

This study examined available data for cities with a population of 65,000 or higher. Population data comes from the U.S. Census Bureau 1-Year American Community Survey for 2021. Home value data for May 2023 and May 2022 comes from Zillow’s ZHVI All Homes Index for single-family homes, condos and coops, smoothed and seasonally adjusted.

This story was produced by SmartAsset and reviewed and distributed by Stacker Media.