With rising mortgage rates, ongoing inflation and economic uncertainty, the housing market has shifted dramatically in the past few months. New data from Redfin found the top 10 cities where the market has cooled the fastest from February 2022 to August 2022. Using the metrics of prices, price drops, supply, pending sales, sale-to-list ratio and speed of home sales, Redfin found that almost all of the fastest-cooling markets are on the West Coast. Coming in at number one was Seattle, Washington, with about 34% fewer homes sold in the first two weeks of August than a year earlier.
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“A lot of sellers aren’t able to get the price they want because buyers don’t want to compete with other offers when mortgage rates are double what they were a year ago,” Seattle Redfin agent David Palmer said in the report.
The rest of the list is as follows:
1. Seattle, WA
2. Las Vegas, NV
3. San Jose, CA
4. San Diego, CA
5&6. Sacramento, CA and Denver, CO (tie)
7. Phoenix, AZ
8. Oakland, CA
9. North Port, FL
10. Tacoma, WA
“These are all places where homebuyers are feeling the sting of rising home prices, higher mortgage rates and inflation very sharply,” Redfin chief economist Daryl Fairweather said in the report. “They’re slowing down partly because so many people have been priced out and partly because last year’s record-low rates made them unsustainably hot. The good news is that the slowdown is dampening competition and giving those who can still afford to buy more negotiating power.”
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