Home sellers across the country are adjusting their asking prices as the real estate market continues its steady downward shift into the fall.
A recent Realtor.com report highlights that property values are dropping most dramatically in metropolitan areas that experienced massive growth during the COVID-19 pandemic.
Elevated mortgage rates combined with expanding housing inventory are forcing sellers to adjust expectations to meet budget-conscious buyers.
Nationwide, the median listing price per square foot dropped by 1.8% in August compared to the previous year, marking ten consecutive months of annual price reductions.
Regional data reveals that listing prices per square foot decreased across most of the country, falling 3.6% in the Northeast, 2.6% in the South, and 2.1% in the West, while staying flat in the Midwest.
The nationwide decline impacted 36 of the 50 largest American metropolitan markets in August.
According to Realtor.com senior economist Jake Krimmel, former pandemic "boomtowns" like Austin, Tampa, Denver, and San Antonio are simply giving back earlier windfall gains as local inventory rebounds to pre-pandemic levels.
Here are the top ten metropolitan areas that recorded the sharpest year-over-year drops in median listing price per square foot:
- Austin-Round Rock-San Marcos, Texas: -8.1%
- Tampa-St. Petersburg-Clearwater, Florida: -5.6%
- Memphis, Tennessee-Mississippi-Arkansas: -4.1%
- San Francisco-Oakland-Fremont, California: -3.9%
- San Antonio-New Braunfels, Texas: -3.6%
- Denver-Aurora-Centennial, Colorado: -3.4%
- Baltimore-Columbia-Towson, Maryland: -3.2%
- San Diego-Chula Vista-Carlsbad, California: -2.7%
- Orlando-Kissimmee-Sanford, Florida: -2.6%
- Portland-Vancouver-Hillsboro, Oregon-Washington: -2.4%
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