25 hot housing markets that are finally starting to cool

Elena CoxOctober 27, 2022

Hand,Of,Business,People,Calculating,Interest,,Taxes,And,Profits,ToIf you’ve wanted to buy a home but have been priced out of the housing market, the pendulum between a seller’s and a buyer’s market may be swinging in your favor.

The real estate market has had a tumultuous few years since 2020. At the onset of the pandemic, sales plunged sharply, as COVID-19-related uncertainty scared people away. But in June 2020, people jumped back into the market, looking for yards and larger homes in the suburbs, which were better suited for riding out the pandemic. Existing inventory plummeted, and constructing new homes was limited as supply chain issues and labor shortages meant that builders couldn’t keep up with demand. Prices have soared nationwide since autumn 2020— breaking historic records along the way—but now previously hot markets are finally showing signs of a slowdown.

Agent Advice examined September listing data from Realtor.com to see which major metro areas are seeing the largest share of price reductions. This analysis was limited to the 250 largest metropolitan areas, including the main city and surrounding towns and suburbs. Price reductions are the number of listings that have had their list price dropped within that area during the month of September. Reductions are a sign sellers may be expecting too much for their properties, especially as the Fed’s increased interest rates have begun to put pressure on buyers.

The median list price for a home in the U.S. was $427,000 in September 2022, down slightly from a record high of $450,000 in June of the same year, according to Realtor.com listing data. However, home prices are still up by double digits from the same time a year ago.

Many metro areas on this list are areas in the Western U.S. that saw rapid price growth spurred by the COVID-19 pandemic, as people in work-from-home situations opted to leave densely populated, comparatively expensive metros for smaller, more affordable cities. In Austin, for example, a Texas-sized slowdown could be in the offing. While median housing prices are still increasing—up 17.4% from the previous year in the second quarter to $546,000—pending sales are down 12%, and houses are staying on the market a few days longer. Inventory is also rising to levels not seen since November 2019.

lakeland florida

#25. Lakeland, Florida

– September active listings: 2,749

– % of Active Listings with Reduced Prices: 58.9%

– Median list price in August: $359,995

valejo california

#24. Vallejo, California

– September active listings: 787

– % of Active Listings with Reduced Prices: 59.0%

– Median list price in August: $623,450

Want to become a realtor? Check out the best online real estate courses in California

olympia washington

#23. Olympia, Washington

– September active listings: 534

– % of Active Listings with Reduced Prices: 59.2%

– Median list price in August: $542,495

greeley

#22. Greeley, Colorado

– September active listings: 930

– % of Active Listings with Reduced Prices: 60.2%

– Median list price in August: $522,500

durham north carolina

#21. Durham, North Carolina

– September active listings: 1,224

– % of Active Listings with Reduced Prices: 60.5%

– Median list price in August: $460,000

spokane washing

#20. Spokane, Washington

– September active listings: 1,389

– % of Active Listings with Reduced Prices: 60.6%

– Median list price in August: $475,000

charlotte north carolina

#19. Charlotte, North Carolina

– September active listings: 5,424

– % of Active Listings with Reduced Prices: 60.8%

– Median list price in August: $419,950

knoxville tennessee

#18. Knoxville, Tennessee

– September active listings: 1,667

– % of Active Listings with Reduced Prices: 61.2%

– Median list price in August: $422,450

reno nevada

#17. Reno, Nevada

– September active listings: 1,613

– % of Active Listings with Reduced Prices: 61.8%

– Median list price in August: $622,225

charleston south carolina

#16. Charleston, South Carolina

– September active listings: 2,247

– % of Active Listings with Reduced Prices: 62.0%

– Median list price in August: $500,000

palm bay florida

#15. Palm Bay, Florida

– September active listings: 2,049

– % of Active Listings with Reduced Prices: 62.2%

– Median list price in August: $379,995

Interested in real estate? Check out the best online real estate courses in Florida

dallas texas

#14. Dallas, Texas

– September active listings: 16,529

– % of Active Listings with Reduced Prices: 62.7%

– Median list price in August: $453,530

Want to become a realtor? Check out the best online real estate courses in Texas

sacramento

#13. Sacramento, California

– September active listings: 4,477

– % of Active Listings with Reduced Prices: 62.7%

– Median list price in August: $600,000

indianapolis indiana

#12. Indianapolis, Indiana

– September active listings: 3,621

– % of Active Listings with Reduced Prices: 62.8%

– Median list price in August: $299,996

tucson arizona

#11. Tucson, Arizona

– September active listings: 2,367

– % of Active Listings with Reduced Prices: 63.9%

– Median list price in August: $382,483

jacksonville florida

#10. Jacksonville, Florida

– September active listings: 5,595

– % of Active Listings with Reduced Prices: 65.1%

– Median list price in August: $407,500

tampa florida

#9. Tampa, Florida

– September active listings: 10,090

– % of Active Listings with Reduced Prices: 67.9%

– Median list price in August: $429,450

provo utah

#8. Provo, Utah

– September active listings: 2,366

– % of Active Listings with Reduced Prices: 70.3%

– Median list price in August: $555,000

colorado springs

#7. Colorado Springs, Colorado

– September active listings: 2,431

– % of Active Listings with Reduced Prices: 70.9%

– Median list price in August: $504,475

austin texas

#6. Austin, Texas

– September active listings: 8,506

– % of Active Listings with Reduced Prices: 71.8%

– Median list price in August: $558,275

Want to become a realtor? Check out the best online real estate courses in Texas

ogden

#5. Ogden, Utah

– September active listings: 1,888

– % of Active Listings with Reduced Prices: 73.4%

– Median list price in August: $532,500

salt lake city utah

#4. Salt Lake City, Utah

– September active listings: 2,729

– % of Active Listings with Reduced Prices: 75.1%

– Median list price in August: $579,999

denver colorado

#3. Denver, Colorado

– September active listings: 6,512

– % of Active Listings with Reduced Prices: 75.3%

– Median list price in August: $625,000

boise idaho

#2. Boise, Idaho

– September active listings: 4,063

– % of Active Listings with Reduced Prices: 76.8%

– Median list price in August: $549,900

phoenix arizona

#1. Phoenix, Arizona

– September active listings: 16,778

– % of Active Listings with Reduced Prices: 86.3%

– Median list price in August: $493,500

About the Author

Elena Cox is a data journalist for Realtor.com. She has a master’s degree in data journalism from Columbia University’s Graduate School of Journalism. She previously worked for CBS News, Bloomberg TV, and NY1.

Last Updated: 10/27/2022

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