Seattle is leading the way in cooling housing markets, according to a new report from Redfin. The West Coast market was pricey even before the pandemic. Now it’s seeing even more affordability backlash from rising mortgage rates.

Redfin analyzed the 100 most populous U.S. metropolitan areas. Then it ranked them on how quickly they’re cooling, according to changes in metrics from Feb. through Aug.

Metrics included prices, price drops, supply, pending sales, sale-to-list ratio and speed of home sales.

The top 10 are all on the West Coast. These markets have long been expensive, or became much less affordable because of the influx of relocating homebuyers during the pandemic.

Homebuyer demand and competition are dropping off quicker in Seattle than any other major metro this year. About 34% fewer homes sold within two weeks in August than a year earlier. This represents a strong reversal from the 7% increase in February.

The typical home sold for 5% more per square foot in August than a year earlier, compared with a 23% year-over-year increase in February.

Also, the typical home is selling for 2% less in August than a month earlier. The stats indicate that Seattle buyers have more to choose from, homes are taking longer to sell and prices are rising much slower than they were earlier this year, Redfin analysts say.

Behind Seattle in the top 10 are: 

  • Las Vegas
  • San Jose
  • San Diego
  • Sacramento 
  • Denver
  • Phoenix
  • Oakland, Calif. 
  • North Port, Fla. 
  • Tacoma, Wash.

Redfin’s data shows that Seattle, San Jose, San Diego, Sacramento, Denver and Oakland are all among the 15 most expensive housing markets in the U.S. 

Las Vegas, San Diego, Sacramento, Phoenix and North Port are all on Redfin’s list of the 10 most popular migration destinations (based on net inflow, or or how many more users looked to move in than leave).

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