The Big Chill Across the US Real Estate Market
The housing market in northern California is cooling faster than the rest of the U.S., according to a recent Redfin analysis. Of the 10 fastest-cooling housing markets, five are in Northern California. Three of these markets are in the Bay Area. The rest are in the western U.S., such as San Francisco and Seattle. Despite the rapid cooling, many housing markets are still hot. Nonetheless, the trend of declining prices may be affecting all areas, not just California.
San Jose
The San Jose region’s real estate market is cooling fast. While it is still a seller’s market, it has declined from earlier this year. According to data from RE Report, the region’s sales to list price ratio has fallen from 105.8% in June to 101% in July. This rate remains below the average of the previous year. And with inventory issues, home prices will probably decline further.
Oakland
While the Real Estate market in Oakland is still hot, the pace of home sales is slowing. The number of homes sold in June was down compared to June of last year. June was also the least active month since May, but prices were still up. Despite the cooling housing market, home prices are still higher than the year’s previous month. This means that you can get a good deal on an Oakland home while the price is still relatively reasonable.
San Francisco
If you’re a resident of San Francisco, you may have noticed that the housing market is cooling off. Historically, the housing market has been immune to major corrections, but this time, it’s different. The tech sector grew dramatically during the pandemic, but is now seeing significant layoffs and resulting in declining home sales. Rising mortgage rates are also playing a role in the cooling down of the Real Estate market.
Seattle
Recent statistics indicate the housing market in Seattle is slowing down. While home prices are up 15.2% since May 2021, pending home sales are down 13% and new listings are up 2.5%. This means that the market is becoming too expensive for many buyers. Despite the slowdown, however, Seattle still has a healthy housing market. The tech sector is a major driving force behind the strong demand for Seattle Real Estate.
Stockton
Despite reports that the Stockton real estate market is cooling fast, the current conditions are actually good. The region’s housing market has been on a recovery trajectory for more than a decade, and there are several indicators that point to this trend continuing. The good news for investors is that this should mean big gains this year.
Boise
The housing market in Boise is one of the most overpriced in the country, according to numerous reports. In June, researchers from Florida International University and Florida Atlantic University analyzed 100 markets and found that property prices in the Boise metro area were 69 percent higher than expected, based on a historical price pattern. While price growth has slowed somewhat in the last few months, the market is still hot and continues to experience strong growth.
Denver
The real estate market in Denver is cooling fast, but this doesn’t mean the city’s housing market is dead. With an unemployment rate of 3%, the area is still a very good place to invest. In addition, the young population of the city is driving construction and property values upwards. As long as the population of the city continues to grow, this city will continue to be a hotbed of real estate investment.
Tacoma
The Real Estate market in Tacoma is currently a seller’s market. There are more buyers than available homes, and prices are rising quickly. Because of the limited inventory, buyers are competing with each other for homes, and many properties are receiving multiple offers. For this reason, the housing market in Tacoma is a good option for those who are interested in investing in real estate. However, it is important to note that Tacoma is not a great option for investors looking for short-term rentals.
Placer County
Home prices in Placer County have soared over the past couple of years, with the median home price in the area now reaching over $4 million. While this is still considered a low level of homeownership, the rising home prices are making it difficult for those without a home to afford a home. Several factors are contributing to this situation, but one of the most significant is the lack of new construction.
Sacramento
There’s no question that the real estate market in Sacramento is cooling fast. The number of homes for sale has fallen to its lowest level in nearly eight years, and the housing inventory remains below two months. With such low inventory, housing demand is going to be restrained for several more years, and prices are projected to rise by 15.8% over the next year. Meanwhile, Sacramento’s relatively low cost of living is a major attraction for first-time homebuyers and renters alike.
