Home Prices Are Falling the Fastest in These Cities

While the U.S. housing market cools down and enters a seasonal late-summer transition, price drops are hitting some metropolitan areas much harder than others—and it might not be where you think.High mortgage rates and shifting local supply-and-demand dynamics have driven down list prices across the country, though more slowly in August than in previous months.Sellers are trending toward more realistic pricing, and the market is seeing broader price corrections. Metro areas that saw explosive, COVID-19 pandemic-era growth are now experiencing some of the deepest cuts in the price per square foot.In August, the price per square foot—a measure that controls for the size of homes on the market—decreased year over year for the 10th straight month. Nationwide, housing prices per square foot are down 1.8% year over year, and median list prices fell year over year in three of the four regions (-3.6% in the Northeast, -2.6% in the South, and -2.1% in the West), while prices remained flat in the Midwest.At the metro level, the median list price per square foot fell in 36 of the top 50 metros in August, another sign that it's "game over" for unrealistic seller demands.The largest price-per-s...