Signs of a collapse in the housing market have been evident throughout the year and have now begun to impact home values. While the national median sales price is a commonly referenced metric when analyzing home values, the decline in that metric alone does not provide a complete picture. Home price declines have not been uniform throughout the country, and in some areas, higher mortgage rates and lower demand have even caused home values to fall below where they were a year ago. When viewing the map below, which details the 12-month change in median sales prices by major metropolitan area, we can see that this phenomenon is still rare, but in some parts of the country, such as the Pacific Northwest, the Southeast, and Ohio, home value losses have become more common.
Upon examining the top and bottom 15 metropolitan areas by median home sales growth, we see that Grand Forks, North Dakota, and Hailey, Idaho, have experienced the largest growth and decline, respectively.
The map below shows the areas in the US by the percentage of active listings that have reduced their prices. Nearly 50% of metropolitan areas tracked by Redfin have seen over 30% of listings reduce in price. It is notable that the Pacific West and the Southeast have experienced the highest price reduction rate, possibly indicating faster demand destruction in those areas. In contrast, the Northeast and the Northern Midwest have seen very few price reductions, possibly indicating a less inflated housing market compared to the rest of the nation.
Again, upon examining the top and bottom 15 metropolitan areas, we see that Provo, Utah, and Green Bay, Wisconsin, have the highest and lowest price reduction rates, respectively. Interestingly, eight of the 15 metropolitan areas with the least price reductions are located in Wisconsin.