UNAFFORDABLE UTAH

4 Utah markets make U.S. top 25 list of falling home prices

Nov 14, 2023, 2:55 PM | Updated: 2:57 pm

St. George home construction...

FILE: Home under construction are pictured in St. George on April 8, 2021. Nationally, the U.S. housing market has been resilient even in the face of mortgage rates over 7%. (Jeffrey D. Allred, Deseret News)

(Jeffrey D. Allred, Deseret News)

SALT LAKE CITY — Nationally, the U.S. housing market has been resilient even in the face of mortgage rates over 7%.

The median U.S. home price was $406,900 in the third quarter of 2023 — up 2.2% from this time last year, according to a new National Association of Realtors’ report first reported by Insider. That uptick is after a 2.4% year-over-year decline posted in the second quarter of this year.

Still, home prices are staying high, combined with mortgage rates that are making today’s housing market the least affordable in decades. More than 80% of metro markets (182 out of 221) posted home price gains in the third quarter of 2023 with a 30-year fixed mortgage rate that ranged from 6.81% to 7.3%, according to the association.

However, some metro areas saw year-over-year price declines in the third quarter, according to the report. The declines are a far cry from a “crash” but indicate these markets have been among the hardest hit by today’s slowing housing market. Many of them saw dramatic price increases amid the pandemic-era housing rush and are now recalibrating to today’s sluggish sales.

Less than one-fifth of the markets (38 out of 221) included in the National Association of Realtors’ report saw home price declines in the third quarter, down from 41% in the second quarter. In 25 markets, single-family home prices fell at least 1% year over year.

Still, housing affordability worsened in the third quarter because of high home prices and mortgage rates. The monthly mortgage payment on a typical existing single-family home with a 20% down payment was $2,192, up 7% from the second quarter and 19.2% from one year ago, according to the association.

Here are the 25 markets where single-family home prices fell at least 1% in the third quarter year over year, Insider reported using the association’s quarterly report.

Four markets included in the ranking are located in Utah, among the states in the West that saw home prices skyrocket amid the COVID-19 housing crunch. They are St. George (No. 6), Provo (No. 7), Logan (No. 8), and Salt Lake City (No. 23).

Where home prices are falling the most

  1. Austin, Texas:-10.3%
  2. Honolulu, Hawaii:-5.8%
  3. Jackson, Mississippi:-4.8%
  4. Shreveport, Louisiana:-4.6%
  5. Cape Coral, Florida:-3.6%
  6. George, Utah:-3.6%
  7. Provo, Utah:-3.5%
  8. Logan, Utah:-3.3%
  9. San Antonio, Texas:-3.1%
  10. Baton Rouge, Louisiana:-2.9%
  11. Kennewick, Washington:-2.5%
  12. Macon, Georgia:-2.4%
  13. Jacksonville, Florida:-2%
  14. Chico, California:-1.8%
  15. Myrtle Beach, South Carolina:-1.8%
  16. Punta Gorda, Florida:-1.8%
  17. Salem, Oregon:-1.7%
  18. Crestview, Florida:-1.6%
  19. Lakeland, Florida:-1.5%
  20. Pensacola, Florida:-1.5%
  21. Phoenix, Arizona:-1.5%
  22. Yakima, Washington:-1.4%
  23. Salt Lake City, Utah:-1.2%
  24. Dallas, Texas:-1.1%
  25. Houston, Texas:-1.1%

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4 Utah markets make U.S. top 25 list of falling home prices