The Housing Market Is Shifting—Here’s Where Prices Are Dropping

West Coast Woes: San Francisco’s Sudden Dip

San Francisco, once the poster child for sky-high real estate, is experiencing a surprising reversal. According to recent Zillow data, the median home price in San Francisco has dropped by nearly 4% compared to last year. This may not sound huge, but for a city used to relentless price hikes, it’s a seismic shift. Many sellers are lowering asking prices as tech layoffs and remote work reduce demand for downtown living. Open houses that used to attract bidding wars now see buyers negotiating for the first time in years. Redfin reports that nearly 25% of active listings in San Francisco saw price cuts in the last quarter. This cooling trend is quietly reshaping the Bay Area’s housing landscape.

Seattle’s Slowdown: From Hot to Not

Seattle’s housing market, a former darling for both tech workers and investors, is witnessing a marked slowdown. The median price for a single-family home fell by about 3.1% since last spring, based on Northwest Multiple Listing Service figures. High mortgage rates have made monthly payments less affordable, pushing many buyers to the sidelines. Additionally, inventory levels are creeping up, giving buyers more choices and more negotiating power. Homes are now sitting on the market for an average of 25 days, up from just 8 days during the pandemic peak. Sellers are responding by reducing prices, hoping to attract cautious buyers. It’s a striking change for a city that once saw homes snapped up almost instantly.

Phoenix Cools Off: A Sunbelt Surprise

Phoenix saw massive price surges during the pandemic, but those gains are now fading. According to CoreLogic, home prices in Phoenix dropped around 2.8% in the last year. Rising interest rates are a big factor, pinching affordability for first-time buyers. Investor activity has also slowed, with fewer cash offers flooding the market. New listings are staying active much longer, and price reductions have become more common, with over 30% of listings slashing prices in May alone. Neighborhoods that saw the biggest booms, like Chandler and Gilbert, are now the ones with the sharpest declines. The city’s market is no longer the seller’s paradise it once was.

Austin Adjusts: Tech Hub with Falling Prices

Austin, Texas, was one of the hottest housing markets during the pandemic, but now it’s experiencing a significant adjustment. According to the Austin Board of Realtors, median home prices have dropped by about 12% since their peak in mid-2022. The city’s rapid population growth has slowed, and new construction projects have increased competition among sellers. Homes that used to spark bidding wars are now seeing price cuts of $20,000 or more. Many buyers are returning to the sidelines, waiting for prices to settle. The local market is shifting from a frenzy to a more traditional, balanced environment.

Denver’s Decline: Rocky Mountain Realities

Denver’s real estate market is seeing prices come down after years of relentless growth. The Denver Metro Association of Realtors reports that home prices in the area have dropped by about 3.5% in the past year. Higher mortgage rates have cooled off demand, especially among younger buyers who are most sensitive to rate changes. Sellers are increasingly motivated to negotiate, and the days of all-cash, over-asking offers seem like a distant memory. More homes are staying on the market longer, with price reductions becoming a regular feature of new listings. The housing market in Denver is finding a new, lower equilibrium.

Las Vegas: The Gamble Loses Its Shine

Las Vegas, long a magnet for investors and second-home buyers, is now experiencing notable price drops. Data from the Greater Las Vegas Association of Realtors shows that median home prices have fallen by about 4.2% year-over-year. Investor interest has cooled as rental rates flatten and short-term rental regulations tighten. Many buyers are waiting on the sidelines, hoping for even lower prices ahead. Properties are taking twice as long to sell compared to last year. The city’s rapid growth during the pandemic has given way to a more cautious, slower-paced market.

Boise’s Bubble Deflates

Boise, Idaho, which saw explosive price growth during the pandemic, is now seeing home values fall. According to Realtor.com, home prices in Boise have declined by 5.8% since last year. Many buyers who moved in from higher-priced cities are now hesitating, as remote work trends shift and affordability becomes a concern. Sellers are finding it harder to fetch top dollar, and price cuts are becoming standard practice. Homes that once sold within days now linger on the market for weeks. The rapid rise in prices has reversed just as quickly, leaving many locals relieved and some recent buyers concerned.

Salt Lake City: Prices Retreat from Highs

Salt Lake City’s housing market, which saw prices skyrocket over the last few years, is now experiencing a correction. The Salt Lake Board of Realtors reports median home prices have dropped roughly 4% since last summer. Higher interest rates and increased inventory are giving buyers more leverage. Many sellers are offering incentives or reducing prices to attract offers, a stark contrast to the competitive atmosphere of previous years. The number of active listings has climbed, and the days of double-digit annual gains appear to be over. The market is stabilizing at lower price points, making homes more accessible to local buyers.

Los Angeles: Luxury Listings Lose Value

Los Angeles, famous for its luxury real estate, is not immune to the national price drop trend. According to the California Association of Realtors, median home prices in LA County are down about 2.5% year-over-year. The high cost of borrowing is deterring many would-be buyers, especially in the upper end of the market. Price reductions have become more frequent, particularly for homes over $2 million. Open houses are quieter, and sellers are more willing to negotiate than in the past five years. The city’s housing market is showing signs of cooling, with more balanced conditions emerging for both buyers and sellers.

Portland’s Market Correction

Portland, Oregon, has seen its housing market cool as affordability challenges mount. According to the Regional Multiple Listing Service, the median home price in Portland has dropped by about 3.6% compared to last year. Fewer bidding wars and more price reductions are the new normal. Many buyers are taking a wait-and-see approach, hoping for even better deals in the coming months. Sellers are responding by making their listings more attractive with price cuts and incentives. The city’s once red-hot market is now settling into a slower, more predictable rhythm.

Chicago: A Balanced Market Returns

Chicago’s housing market is shifting away from tight inventory and rising prices. Data from the Chicago Association of Realtors shows that median home prices have decreased by around 1.8% over the past year. More homes are available for sale, giving buyers additional options and negotiating power. Price reductions are no longer rare, and sellers are adjusting their expectations to meet the current reality. Homes are staying on the market longer, and multiple-offer situations have decreased. The city’s market is returning to a more balanced state not seen for several years.