Shocking Housing Market Plunge: 9 Big Cities Tumble from 2022 Peaks!

In a booming housing market where every metropolitan area is racing to new heights, you’d expect a continuous upward ride, right? Wrong! Today, let’s delve deep into an intriguing situation – a bag of mixed fruits. Some metropolitan areas like San Francisco and Seattle are seeing a downslide in housing prices from their highs earlier this year, while other areas are creeping their way to new peaks. Sound interesting? Buckle up, my fellow investor, as we embark on a journey through the peaks and troughs of the housing market in 2022

Hitting the Potholes: 9 Metros below their 2022 peaks

So let’s take a journey through the first point of focus, the decreasing Empires – San Francisco, Seattle, and Portland. From their scorching hot peaks earlier this year to a surprising cooldown, these cities have seen a drop in housing prices. While San Francisco and Seattle slid down by around 12% and 11% respectively from their peaks in May 2022, Portland gloomily lost almost 6% of their record high in the same period.

Connect this to a broader picture, you’d find the same story glaring in the southwestern U.S. Housing prices in Denver, Phoenix, and Las Vegas fell by nearly 5% each from their 2022 highs. Interestingly, Dallas isn’t far behind with a 4% drop, followed by San Diego and Los Angeles, easing by 2% and 1% respectively.

While this downward shift might make your stomach churn, let’s be clear, it’s not a falling sky. Rather, it provides opportunities for new investors or those looking for slightly affordable coverage in these expensively priced metropolitan areas.

Gliding to New Heights: 8 Metros Setting New Records

Now, here’s the second treat in our mixed fruit cocktail. While some cities are experiencing a downward shift, other metros have indeed soared to new heights – talk about two sides of the same coin. Areas like New York, Detroit, Chicago, Boston, Miami, Cleveland, Charlotte, and Atlanta are setting the housing market ablaze with their stunning leaps to new highs.

New York’s metro area alone recorded a proud 7.1% year-over-year increase, trailed closely by Detroit at 8.1%. Chicago, Boston, Miami, Cleveland, Charlotte, and Atlanta all followed suit, boasting an impressive increase in respective year-over-year percentages.

Decoding the Data: Demystifying the Terms

While the data can sound a little intimidating, it’s really not as complex as it seems. When we talk about the housing price index (HPI), we refer to a tool that observers use to track the price of residential properties over a period. The ‘sales-pairs method’ is just a way of comparing the price at which a particular house has been sold on different occasions. This method removes the variations caused by changes in size, location, or quality that might impact average or median pricing calculations.

The Players Behind the Scene

Various business entities, including real estate companies, financial institutions, and construction firms, are part of the process of these fluctuations. Bigger cities like San Francisco and Seattle are home to major corporations and experienced steep increases in home prices during the tech boom. When these metropolitans see a decline in housing prices, it’s usually a keen indicator of market shifts and potentially hints at larger economic changes.

To encapsulate, the housing market is an ever-whirling whirlpool of highs and lows – some metros rise to the occasion while others might skid down the slope. As we continue to watch this roller coaster ride, remember, that every trough and crest presents a new opportunity. Whether it’s a brisk downturn or a newfound peak, the key for us investors is to know when to hop on or off this thrilling ride!

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