Where US home prices are cooling down for the fall

10 cities with the biggest drop in home price ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ [Better] [Better]( This week's mortgage rates [Rate chart] [Rate chart]( Source: US average mortgage rates from [FreddieMac]( --------------------------------------------------------------- Better Mortgage Interested in today's rates? [See Better Mortgage rates]( --------------------------------------------------------------- #FundFact 🏡 Fannie Mae forecasts that a total of 4.8 million homes will be sold in 2023.¹ Things to know Where US home prices are cooling down for the fall Where US home prices begin to cool down for the fall It’s no secret that those hoping to achieve their dream of homeownership are navigating one of the most challenging housing markets in years. We experienced an all-time historic high in June 2022, with the median home price averaging $413,800.² As of June 2023, one calendar year later, the median home price came in at $410,200—the second highest price of all time.² Inflated home prices are driven by a number of factors, but a large majority of them can be attributed to COVID’s impact on the economy and housing market. These numbers have been great for those who own, as they’ve seen the value of their home increase during this time. On the other hand, these numbers can be discouraging for those who are interested in starting their homebuying journey. Luckily, we’re finally beginning to see some housing markets cool down across the country. Will this fall be the sweet spot for interested homebuyers? In January 2021, we saw record low mortgage rates with the average 30-year fixed-rate mortgage coming in at 2.65%.³ These historically low rates led to a hot housing market with crazy bidding wars, but as rates began to increase and home inventory began to decrease, demand skyrocketed leading to an increase in home prices. Despite today’s rising mortgage rates and home prices, mortgage originations increased from $333B in the first quarter of 2023 to $463B in the second quarter.⁴ While we’ve recently experienced near historic lows on the housing inventory front, both Zillow and Redfin found that inventory grew in September 2023, with supply at its highest level since February 2023⁵, which means we could see prices begin to drop. Where are home prices falling? After watching home prices continue to rise since the pandemic boom, it feels like breaking news to share housing markets where home prices are beginning to fall. Interestingly enough, housing markets where home prices have fallen the most since last year are mostly places that saw a spike in home prices during the COVID price gains. Conversely, markets where prices didn’t spike as dramatically are beginning to see price gains now. Below are the top 10 areas with the biggest price drops:⁶ - Myrtle Beach, SC — Myrtle Beach experienced the largest price drop, a 2.9% drop from August 2022 to August 2023. The median listing home price of August 2023 came in at $355,784. - Las Vegas, NV — A close second; Las Vegas experienced a 2.7% price drop from August 2022 to August 2023. The median listing home price of August 2023 came in at $456,848. - Stockton, CA — Not far behind is Stockton, where home prices dropped 2.1% from August 2022 to August 2023. The median listing home price of August 2023 came in at $585,965. - Austin, TX — Almost tied with Stockton, home prices dropped 2% in Austin from August 2022 to August 2023. The median listing home price of August 2023 came in at $568,237. - Phoenix, AZ — Home prices in Phoenix dropped 1.2% from August 2022 to August 2023. The median listing home price of August 2023 came in at $537,900. - Ogden, UT — Tied with Boise, ID (below), home prices fell 1.1% from August 2022 to August 2023. The median listing home price of August 2023 came in at $571,995. - Boise, ID — Tied with Ogden, UT (above), home prices fell 1.1% from August 2022 to August 2023. The median listing home price of August 2023 came in at $584,950. - Lakeland, FL — Home prices dropped 0.9% in Lakeland from August 2022 to August 2023. The median listing home price of August 2023 came in at $359,495. - Honolulu, HI — Second to last is Honolulu where home prices dropped 0.5% from August 2022 to August 2023. The median listing home price of August 2023 came in at $822,500. - Jackson, MS — Coming in last is Jackson, where home prices dropped 0.1% from August 2022 to August 2023. The median listing home price of August 2023 came in at $287,000. --------------------------------------------------------------- Better Mortgage Go from locked to Commitment Letter in 24 hours with Better Mortgage [Get started with One Day Mortgage⁷]( --------------------------------------------------------------- Press play Follow us on social to stay up to date with the latest mortgage tech, tips, and tools: Watch on [TikTok]( • [Instagram]( • [YouTube]( • [Facebook]( --------------------------------------------------------------- Better Mortgage Questions? Connect with a mortgage expert now [Apply today]( --------------------------------------------------------------- Quiz Which of the following is a lender-controlled closing cost? - Appraisal fee - Title insurance - Homeowners insurance - Origination charges [Better] [Better] [social]( [social]( [social]( [social]( [social]( ¹ Source: [Fannie Mae]( ² Source: [USA Today]( ³ Source: [TIME]( ⁴ Source: [Forbes]( ⁵ Source: [NASDAQ]( ⁶ Source: [Business Insider]( ⁷ Better Mortgage’s One Day Mortgage promotion offers qualified customers who provide certain required financial information/documentation to Better Mortgage within 4 hours of locking a rate on a mortgage loan the opportunity to receive an underwriting determination from Better Mortgage within 24 hours of their rate lock. The underwriting determination is subject to customary terms, including fraud and anti-money laundering checks, that take place pre-closing and which may trigger additional required documentation from the customer. Better Mortgage does not guarantee that initial underwriting approval will result in a final underwriting approval. [See One Day Mortgage Terms and Conditions](. © 2023 Better Home & Finance Holding Company and/or its affiliates. Better is a family of companies. Better Mortgage Corporation provides home loans; Better Real Estate, LLC and Better Real Estate California Inc License # 02164055 provides real estate services; Better Cover, LLC sells insurance products; and Better Settlement Services provides title insurance services; Better Connect, LLC dba Better Attorney Match provides real estate attorney connection services; and Better Inspect, LLC provides home inspection services. All rights reserved. Home lending products offered by Better Mortgage Corporation. Better Mortgage Corporation is a direct lender. NMLS #330511. 3 World Trade Center, 175 Greenwich Street, 57th Floor, New York, NY 10007. Loans made or arranged pursuant to a California Finance Lenders Law License. Not available in all states. Equal Housing Lender [Equal Housing Lender]. [NMLS Consumer Access]( BETTER MORTGAGE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, PROMOTIONS AND BENEFITS AT ANY TIME WITHOUT NOTICE. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. Alaska Mortgage Broker/Lender License (#AK330511); Alabama Consumer Credit License (#22548); Arkansas Combination Mortgage Banker-Broker-Servicer License (#114738); Arizona Mortgage Banker License (# 0942146); CA Dept. of Business Oversight - Finance Lenders Law License (#6052748); Loans made or arranged pursuant to Mortgage Company Registration with the Colorado Division of Real Estate (#330511); Connecticut Mortgage Lender License (#ML-330511); District of Columbia Mortgage Dual Authority License (#MLB330511); Delaware Lender License (#026589); Florida Mortgage Lender License (#MLD1484) Georgia Mortgage Lender License (#43354); Iowa Mortgage Banker License (#2018-0056); Idaho Mortgage Broker/Lender License (#MBL-2080330511); Illinois Residential Mortgage Licensee (#MB.6761046); Indiana DFI Mortgage Lending License (#330511); Kansas Mortgage Company License (#MC.0025544); Kentucky Mortgage Company License (#MC419058); Louisiana Residential Mortgage Lending License (#330511); Massachusetts Mortgage Lender License (#ML330511); Maryland Mortgage Lender License (#21438); Maine Supervised Lender License (#330511); Michigan 1st Mortgage Broker/Lender Registrant (#FR0020971); Minnesota Residential Mortgage Originator License (#MN-MO-330511); Mississippi Mortgage Lender License (#330511); Missouri Mortgage Company License (#19-2462); Montana Mortgage Lender License (#330511); North Carolina Mortgage Lender License (#L-162055); North Dakota Mortgage Broker License (#MB103296); Nebraska Mortgage Lender License (#330511); Licensed by the N.J. Department of Banking and Insurance (#330511); New Mexico Mortgage Lender License (#330511); Licensed Mortgage Banker - NYS DFS (#LMB-109666); Ohio Residential Mortgage Lending Act Certificate of Registration (#RM.804430.000); Oklahoma Mortgage Lender License (#ML011933); Oregon Mortgage Lending License (#ML-5310); Pennsylvania Mortgage Lender License (#46959); Rhode Island Mortgage Lender License (#20183669LL); South Carolina-BFI Mortgage Lender/Servicer License (#MLS-330511); South Dakota Mortgage Lender License (#ML.05201); Tennessee Mortgage License (#136757); Texas Mortgage Lender License (#330511); Utah Mortgage Entity License (#11448204); Vermont Lender License (#7618); Virginia Lender License (#MC-5863); Washington Consumer Loan License (#CL-330511); Wisconsin Mortgage Banker License (#330511BA); West Virginia Mortgage Lender License (#ML36354); Wyoming Mortgage Lender License (#3369); Nevada Mortgage Company License (# 5267) Better Mortgage Corporation, Better Real Estate, LLC, Better Settlement Services, LLC, Better Cover, LLC, Better Connect, LLC dbs Better Attorney Match, and Better Inspect, LLC are separate operating subsidiaries of Better Home & Finance Holding Company. Each company is a separate legal entity operated and managed through its own management and governance structure as required by its state of incorporation, and applicable and legal and regulatory requirements. Products not available in all states. Any unauthorized use of any proprietary or intellectual property is strictly prohibited. All trademarks, service marks, trade names, logos, icons, and domain names are proprietary to Better Home & Finance Holding Company. Better Home & Finance Holding Company trademarks are federally registered with the U. S. Patent and Trademark Office. Better Cover is a registered trademark with the U.S. Patent and Trademark Office and is owned by Better Cover, LLC. This email was intended for {EMAIL} [View this email online]( | [Unsubscribe](