Yet again, regional housing markets in the Mountain West are among those seeing the largest share of homes for sale with price tags that are getting slashed.
The price cuts come as the West’s real estate market continues to come down to earth after over two years of runaway price growth fueled by the pandemic housing frenzy. The days of soaring demand buoyed by new remote work opportunities, interest rates at times lower than 3%, and a wave of new household formations are over — squelched by mortgage rates that recently crossed the 7% threshold as the Federal Reserve continues to wage its war against record inflation.
Just as the West was ground zero for soaring home prices fueled by the pandemic housing rush, it’s now ground zero for the sharpest price corrections.
Here are the latest findings, according to a Redfin report published this week, which ranked 93 metro areas with populations of at least 750,000
Price cuts on homes for sale
Boise, Idaho was again the leading metro in Redfin’s rankings with the largest share of homes for sale that had a price drop in October. More than two-thirds — 68.7% — saw a price drop — a larger share than any other metro Redfin analyzed.
Earlier this summer, as home prices began to taper from their spring peak, Boise held that same ranking with a 70% share.
Next came another Mountain West metro. Denver saw a 56.8% share of homes for sale with a price drop, followed in Redfin’s analysis by Indianapolis and Salt Lake City, both at 54.7%. Tacoma, Washington, ranked No. 5, with a 52.5% share.
Home sales crash down to reality
Like Idaho, Utah’s housing market seared red hot during the pandemic housing frenzy. Now, the Salt Lake City metro area is seeing significant declines in sales activity from a year ago.
Of the 93 metro areas in Redfin’s analysis, Salt Lake City led the nation as the metro area to see the biggest drop in number of homes sold and among the top five for the biggest drop in pending home sales.
The number of homes sold fell 47.6% year over year in Salt Lake City in October, according to Redfin. Stockton, California, ranked No 2. with -45.4%, and Cape Coral, Florida, came next with -45.3%. Las Vegas ranked No. 4, with -43.7%, and San Diego rounded out the top five with -41.5%.
Pending home sales fell the most in Allentown, Pennsylvania, declining 54.9% year over year. Next came Greensboro, North Carolina (-50.4%), Honolulu, Hawaii (-47.3%), Salt Lake City (-46%) and Jacksonville, Florida (-45.9%).