Housing Prices Cooling in Once-Hot Markets
By Stephanie Mojica
“Pandemic boomtowns” such as Austin, Boise, Las Vegas, Phoenix, and Sacramento are seeing downturns amidst a stagnating real estate market and an imminent recession, according to Forbes.com.
Typically, housing prices in these cities see consistent growth. However, double-digit percentage gains just aren’t happening anymore — especially with current mortgage rates. For example, Austin’s median price per square foot used to go up about 24% per year. This year, the figure was only 1.3%.
During the height of the COVID-19 pandemic, remote workers living in more expensive areas (especially the East Coast and the West Coast) flocked to Sun Belt destinations for high-quality living at a lower cost. As a result, home prices spiked by about 30%.
The dramatic drops in the stock and cryptocurrency markets are another contributing factor to investors seeing slowed growth in the value of their properties.
Sun Belt cities are far from the only ones seeing this problem, per Forbes.com. Even tech hubs such as San Jose, Oakland, and Seattle are no longer seeing double-digit gains in the value of residential properties.
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