That affordability strain helped push the market into one of the sharpest corrections in the country. ![]() As it turned out, that flood of investment meant places like Las Vegas and Phoenix got crushed even harder when the housing bubble ultimately burst and spurred the 2008 financial crisis.įast-forward to this housing cycle, and Phoenix is once again at the center of the story.ĭuring the Pandemic Housing Boom, Phoenix saw home prices jump a staggering 53.4% between March 2020 and July 2022 as everyone from home flippers to institutional Wall Street firms and Airbnb hosts piled into the market.īut as mortgage rates spiked last year, Phoenix's frothy home prices became a liability. That put those markets in a better position to weather the affordability crunch brought on by last year's mortgage rate shock.īack in the early 2000s, housing speculators assumed the best bang for their buck would be in fast-growing Sunbelt cities. Unlike overheated Western housing markets, many Northeast and Midwest markets remained closer aligned to fundamentals during the Pandemic Housing Boom. ![]() Meanwhile, many Western markets, like Boise and San Francisco, continue to post home price declines. However, that momentum has already stalled: Through the first two months of 2023, many small and mid-sized markets in the Midwest, South, and Northeast have shifted from correction-mode to growth-mode. As the year progressed, and mortgage rates continued to rise, that correction slowly started to spread east. View this interactive chart on Īs mortgage rates began to spike in 2022, Western markets like Seattle, Boise, and San Francisco were among the very first places to see falling home prices. (Keep in mind, the Zillow Home Value Index only measures home values that are in the 35th to 65th percentile, price wise, in a given market.) To better understand the ongoing home price correction-or lack thereof-let's take a closer look at the February data. And in February, just 133 of the nation's 400 largest housing markets registered a month-over-month home price decline, while 267 housing markets saw a month-over-month increase in home prices. In January, 171 of the nation's 400 largest housing markets registered a month-over-month home price decline. The figure of down markets then fell to 245 in November and 256 in December.įast-forward to 2023, and that correction has clearly lost geographical momentum. In October, 292 of those major markets registered a decline. That's the conclusion Fortune has reached after analyzing the latest Zillow data.Īt the height of the correction in September, 303 of the nation's 400 largest housing markets saw a month-over-month home price decline as measured by the seasonally adjusted Zillow Home Value Index (ZHVI).
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