Real Estate Performance In The US Cities:What You Should Know

Real Estate Performance In recent times, it’s pretty plausible that a lot of you have already experienced the housing
boom. It is not just buyers who have encountered the sudden increase in real estate demand
but also brokers, agents, and developers.
With the COVID-19 pandemic driving more workers to go fully remote, many people have the
freedom to move to suburban areas and smaller cities like Denver. Interestingly, the popularity
of these regions was already on the rise prior to the pandemic too. But the pandemic definitely
amplified it.
As per Census data, the West and South are the fastest-growing regions of the last decade. A lot
of smaller cities have declined in population. In contrast, there are some larger counties that
have grown in population significantly.
The housing boom has led to an increase in both the demand and supply of real estate
properties. Despite the pandemic blues, the real estate industry has shown incredible resilience
in keeping up with the demands of the market.


How The Different US Cities Are Faring In The Real Estate Market
The changing situations have brought about drastic changes in the real estate market. While
the housing prices in some major US cities are falling, a lot of cities have witnessed an
exponential rise too. It’s pretty clear that a handful of cities are showing apparent signs of the
market caving.
In the past few years, we have seen how home prices increased significantly due to intense
buyer competition throughout the country. But that’s a thing of the past. The budget has
become a major issue now, which is something we can gauge from the fading demand for real
estate.
As a result, in many US cities, the transition to cheaper homes has already begun. So which are
the cities that have been seeing a downfall in real estate prices in recent times? Let’s take a
look.
The Downward Trend Of Real Estate Value In Major US Cities
Essentially, there are six cities that have seen a dip in home prices recently, and three of them
are located in California. These include San Diego, Los Angeles, and San Francisco. Things have
not really been too promising for Seattle, too, as it witnessed the most significant tumble.
According to statistics, the value of real estate slid down by 4.4% recently. And Seattle is not
the only one in the region to see a decline. Its southern neighbor, Portland, too, had the same
fate with a 0.3% decline. A slight decline was also seen in Denver.
The US Cities Faring Well In The Real Estate Market
It’s fascinating to see how Tampa and Miami in Florida experienced the largest year-over-year
percent increase in July among the 20 metro areas, at 31.8% and 31.7%, respectively.
It’s pretty clear that the real estate market is doing pretty well in these cities. However, the
same cannot be said throughout. The increase in real estate value in cities like DC and
Minneapolis, Minnesota, has been marginal. But the good thing is, none of them had a
decrease.
This is excellent news for both investors and homeowners who are looking to buy or sell their
properties in the current thriving real estate market. It’s always worth choosing an area that
shows rapid growth and appreciation, like Tampa or Miami, as they are certain to provide
valuable returns to property investments over the long run.
The home prices grew most in around 15 cities in the US. And most of them are in the South,
with six being in Florida. This indicates the rising Southern migration trend, which started in 2020.

It can be attributed to a variety of factors, including retirement, affordability, and
increased remote working. These trends have become even more prevalent in the wake of the
pandemic.
However, one city that stands out among the rest is Farmington, New Mexico. With a median
home price of $261,200, the highest percentage of price growth can be seen here. Surprisingly,
Farmington’s market is relatively small, with less than 50,000 residents. Even so, home prices
have increased by more than 20% in 2022. If you’re looking for an affordable place to live with
impressive real estate performance, consider Farmington as a great option.
The Future Of The Real Estate Market In The US
Real estate performances in US cities have been a hot topic amongst analysts this year. Even
with a projected reduction in home sales this year, prices are expected to remain stable in the
vast majority of the markets due to extremely limited supply.
With the limited inventory forcing prices to remain high, investing in the real estate market can
prove to fetch great returns in the long run. Furthermore, a lot of buyers have been forced to
return due to the decline in mortgage rates, despite the inventory levels. So, if you’re
considering investing in the real estate market, now might be the right time to do so.
You may have noticed the impact of the Federal Reserve’s actions on the housing market. With
the central bank increasing interest rates at a pace unlike any other in four decades, the hope
was to cool down the demand and counteract the threat of inflation.
This has led to a slowing down of the real estate market, and borrowing costs have risen
dramatically. In particular, mortgage rates for a 30-year fixed-rate loan have multiplied since
2021, reaching a staggering 6.7%. While Fed officials have suggested that further rate hikes will
follow, for now, they stand as evidence of how the housing market is affected by changes in
interest rates.
Some buyers have already been forced out of the market due to the changing trends. And with
this reduced buyer demand, sellers are at risk of losing their leverage in some cities of the US.
It’s clear that a shift is waiting to happen, so it remains to be seen how the real estate value will
change in the coming times in the different US cities.
Meta Description
The pandemic and rising inflation have impacted the real estate market significantly in different
US cities. Learn more about how the various US cities are performing in real estate now.

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