DALLAS (KDAF) — The housing market is always a huge talker in every state and city across the U.S. and it’s in the market’s nature to always be moving up and down. Now, in 2022, there are some areas across the country that are seeing the housing market cool off more than most.
A study conducted by SmartAsset checked out where housing markets are cooling off the most in 2022 and it’s seeing new home buyers become more and more cautious.
“Rising mortgage rates and declining home sales have signaled the end of a hot housing market that has plagued buyers for over a year. According to the Census Bureau, home sales are down almost 18% since January 2022. However, some areas have cooled more than others,” the study said.
Among the top 10 in the country is Central Texas’ own Austin-Round Rock-Georgetown coming in at No. 2. SmartAsset said that Austin is the fourth-largest metro area in the state of Texas and it’s experiencing a chill in the housing market with the fourth-largest decrease in demand and the 13th-largest price reductions.
“Across specific metrics, Austin-Round Rock-Georgetown has the second-highest median days on the market for home lists (27 days) and the fourth-worst ratio of houses sold to new listings (0.49),” the study adds.
Here's a look at the study's key findings:
- California metro areas are cooling off the most. Three California metro areas rank in the top 10 for our study. In these areas, homes are staying on the market longer relative to a year ago – nearly double the amount of time. Moreover, all three areas have seen over a 33% decrease in the number of houses sold monthly from August 2021 to August 2022.
- The share of listings with price cuts is up 10% from a year ago. Nationally, about 16% of home listings had a price cut in August 2021. Comparatively, that figure is now almost 26%.
- Homes are on the market for less than 10 days in 36 metro areas. Last year, 67 metro areas fell into that category. Nationally, the average time on the market for a home listing currently stands at 13 days.