Get All Access for $5/mo

The Housing Market Is Cooling the Fastest in These 10 Cities The housing market is shifting, and these cities are seeing prices drop the fastest.

By Madeline Garfinkle Edited by Jessica Thomas

Opinions expressed by Entrepreneur contributors are their own.

David Ryder / Stringer | Getty Images

With rising mortgage rates, ongoing inflation and economic uncertainty, the housing market has shifted dramatically in the past few months.

New data from Redfin found the top 10 cities where the market has cooled the fastest from February 2022 to August 2022. Using the metrics of prices, price drops, supply, pending sales, sale-to-list ratio and speed of home sales, Redfin found that almost all of the fastest-cooling markets are on the West Coast.

Coming in at number one was Seattle, Washington, with about 34% fewer homes sold in the first two weeks of August than a year earlier.

Related: Is a Housing Market Correction Finally Underway?

"A lot of sellers aren't able to get the price they want because buyers don't want to compete with other offers when mortgage rates are double what they were a year ago," Seattle Redfin agent David Palmer said in the report.

The rest of the list is as follows:

1. Seattle, WA

2. Las Vegas, NV

3. San Jose, CA

4. San Diego, CA

5&6. Sacramento, CA and Denver, CO (tie)

7. Phoenix, AZ

8. Oakland, CA

9. North Port, FL

10. Tacoma, WA

"These are all places where homebuyers are feeling the sting of rising home prices, higher mortgage rates and inflation very sharply," Redfin chief economist Daryl Fairweather said in the report. "They're slowing down partly because so many people have been priced out and partly because last year's record-low rates made them unsustainably hot. The good news is that the slowdown is dampening competition and giving those who can still afford to buy more negotiating power."

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Leadership

Why Your AI Strategy Will Fail Without the Right Talent in Place

Using fractional AI experts through specialized platforms allows companies to access top talent cost-effectively, drive innovation and scale agile strategies for growth.

Business News

Here's What the CPI Report Means for Your Wallet, According to JPMorgan and EY Experts

Most experts agree that there will be another rate cut next week.

Business News

These Companies Offer the Best Work-Life Balance, According to Employees

The ranking is based on Glassdoor ratings and reviews.

Productivity

6 Habits That Help Successful People Maximize Their Time

There aren't enough hours in the day, but these tips will make them feel slightly more productive.

Science & Technology

Use This Framework to Successfully Integrate AI Into Your Business Operations

Here's how to ensure both innovation and compliance when using AI in your organization.