Home prices are falling in these 4 former boomtowns – it’s a bad omen for the rest of America

House prices are falling in four former hotspots as near-record prices drive home buyers away.

Three of the metro areas where prices are falling are located, according to New insights from real estate company Redfin.

The sudden drop in value comes after millions of Americans fled to the state during the Covid-19 pandemic, sending prices soaring.

In Austin, home prices are down 2.9 percent year over year.

The so-called pandemic “boomtown” has seen an influx of people in recent years – partly due to a booming tech industry in the city.

According to the data, home prices in San Antonio and Fort Worth both fell 1.2 percent, while sales prices in Portland, Oregon fell 0.9 percent.

Nationwide, price drops are the highest since November 2022, according to Redfin, indicating that costs will soon fall in other areas as well.

U.S. home prices rose 4.4 percent from a year earlier to a record high during the four weeks ending June 2, according to Redfin.

The average sales price during the period was $392,200.

But there are early indications that national price growth could soon slow down, with one in 15 home sellers reducing their asking price over the period.

In Austin, home prices fell 2.9 percent year over year through the beginning of this month.

Several major tech companies, including Tesla and Oracle, have moved their headquarters to the city in recent years — and low taxes attracted an influx of well-paid workers during the pandemic.

The Texas capital is home to the fastest growing population of millionaires in the US, according to separate data earlier this year.

Over the past ten years, the number of millionaires in the city has grown by 110 percent to 32,700.

This boom has priced some homebuyers out of the city, so prices are now starting to fall.

Prices in San Antonio and Fort Worth have also risen due to an influx of residents seeking a lower cost of living, a better quality of life and a lack of income taxes.

a questionnaire by real estate company Zillow earlier this year found that the Lone Star State had the second-highest number of new residents of all 50 states in 2022 — and had the most Gen Z movers.

Meanwhile, Portland, Oregon saw the fourth largest year-over-year price decline, according to Redfin.

In a reversal of growth trends, more people left Oregon and moved to the state in 2022.

According to Redfin, the typical active listing has been on the market for 46 days – an increase of 2.3 percent year over year.

This indicates that the supply of homes is becoming obsolete more quickly than a year ago, as high mortgage rates and housing costs cause potential buyers to withdraw.

Home prices in Fort Worth are both down 1.2 percent year over year

Prices in San Antonio were driven up by an influx of residents seeking a lower cost of living, a better quality of life and a lack of income taxes

The weekly average mortgage rate rose above 7 percent again last week, according to data from government-backed lender Freddie Mac.

This pushed the average monthly home payment in the US to a near-record high of $2,838.

“There’s no denying that it’s expensive to buy a home right now, but some people are having luck negotiating with sellers,” says Bonnie Phillips, a Redfin agent in Cleveland.

“I’ve seen buyers get a home for less than the asking price if it’s been on the market for a few weeks.”

Separate data from Redfin earlier this year showed that homes in Florida’s hot spots are also falling in price as supply increases.

On the state’s west coast, the number of homes on the market is rising and homes are taking much longer to sell, the real estate company found.