Monday Market Update: The Weather Is Cooling- Home Prices Are Not
NAR® reports that over ¾ of housing markets have experienced a price jump in Q3.
While the weather is finally cooling off at last here in Silicon Valley, nationwide home prices are not following suit. Realtor.com® recently reported that home prices have risen in 82% of markets in Q3 of 2023, compared to rising in 58% of Q2.
Note that this data represents national averages and that local market trends vary greatly. To exemplify that point, NAR® has also identified the cities with both the largest price increases, as well as the largest price drops. Note that there are no Silicon Valley or even California cities on either end of the spectrum.
MARKETS WITH LARGEST PRICE INCREASES
1. Fond du Lac, WI (18.9% YoY increase)
2. Hickory, NC (17.1% YoY increase)
3. Oshkosh, WI (15.2% YoY increase)
4. Green Bay, WI (14.8% YoY increase)
5. Reading, PA (14.7% YoY)
MARKETS WHERE PRICES FELL MOST
1. Austin, TX (Dropped 10.3%)
2. Phoenix, AZ (Dropped 1.5%)
3. Salt Lake City (Dropped 1.2%)
4. Dallas, TX (Dropped 1.1%)
5. Houston, TX (Dropped 1.1%)
We have double-checked the information above and do find it interesting that double digit prices drops occurred in only one documented market. The rest of the ‘drops’ are nominal and Realtor.com® indicates that “Home prices fell the most in some of the markets that experienced the largest run-up in prices during the COVID-19 pandemic.” On the flip side, “…cheaper housing markets in the Midwest notched some of the largest price gains.”
While existing homeowners are continuing to build equity and sellers are generally very satisfied with their ROI, it is the buyers who find themselves in a tough position given rates and rising prices. But if they are able, entering the market now could still be cheaper than next year if home prices continue this trajectory.
Please, please be sure to chat with an active and experienced local agent about the area(s) you wish to explore.
All my best,
Bobbi
Bobbi Decker
DRE#00607999
Broker Associate, Bobbi Decker & Associates
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com
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