3 Markets Where Home Prices Have Dropped by More Than 10%

A housing price correction is underway across America, and homeowners are starting to feel the pain, according to new Black Knight research.

The firm’s latest Mortgage Monitor Report found that equity has disappeared fast. In a summary of the findings, Ben Graboske, Black Knight data and analytics president, says:

“In the span of just three months, U.S. mortgage holders saw a total of $1.3T (trillion) in newly acquired equity evaporate. That is – by far – the largest quarterly decline on record by dollar value and the largest since 2009 on a percentage basis.”

The news isn’t all grim, however. Black Knight notes that the rate of price declines had slowed somewhat in September. In addition, mortgage holder equity remains $5 trillion above pre-pandemic levels.

Still, today’s homeowner is experiencing stormier seas than in recent years. And in the following markets, prices have fallen by more than 10% from their peak highs earlier this year. We’ll also take a look at markets where prices have fallen by 5% to 10%.

1. San Jose, California

Decrease in this housing market’s median home price:

• From its 2022 peak: 13.3%
• From August to September: 1%

By the end of summer, it was clear that San Jose had joined the list of “10 Housing Markets That Are Cooling Fastest.” In fact, this famously expensive city now has seen more home equity vanish than any other major U.S. metro, Black Knight found.

2. San Francisco

Decrease in this housing market’s median home price:

• From its 2022 peak: 12.1%
• From August to September: 1.3%

The San Francisco Chronicle recently polled Bay Area residents and found that roughly one-third say they are likely to leave the city within the next three years.

The high cost of living is the main factor driving folks away. But the city’s population is already in decline, and that may be pressuring home prices and pushing them lower.

3. Seattle

Decrease in this housing market’s median home price:

• From its 2022 peak: 10.8%
• From August to September: 1.1%

Prices are sliding in Seattle. As John Manning, owner of RE/MAX On Market in Seattle, told Axios:

“There is no longer any doubt that the Seattle housing market is in a correction. Median prices are down, and the days-on-market have increased.”

Markets where prices have dropped by more than 5%

In several other markets — all in the West — Black Knight found that home prices have dipped by more than 5% from their 2022 peaks. They are:

• San Diego: -8.2%
• Phoenix: -7.6%
• Sacramento, California: -7.3%
• Denver: -7%
• Los Angeles: -6.4%
• Austin, Texas: -6.4%
• Las Vegas: -5.9%
• Portland, Oregon: -5.7%
• Riverside, California: -5.6%