Home prices are still rising in most of the country as the Federal Reserve continues to raise interest rates in its efforts to tame inflation, but a few overheated metros are beginning to see double-digit declines, the National Association of Realtors reports. In the first quarter of 2023, high-priced cities such as San Francisco, San Jose, Calif., and Reno, Nev., posted year-over-year price drops of at least 10%, while destinations like Milwaukee, Dayton, Ohio, and Oklahoma City, Okla., saw prices rise by at least 10% on an annual basis.
While 70% of the metros NAR tracks are still experiencing an uptick in home prices, the national median price for a single-family existing home decreased slightly, by 0.2% to $371,200 in the first quarter. That reflects a slowdown in home prices in more places: In the previous quarter, the national median price rose 4%.
“Home prices are lower in cities that previously experienced rapid price gains,” [Lawrence] Yun notes. He flags cities like Boise, Idaho, and Austin, Texas, where home prices surged as high as 67% through 2022 but are now coming down. In the first quarter, year-over-year prices fell 13.5% in Austin, 10.3% in Boise and 7.3% in Phoenix, NAR’s report shows.
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