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Home values have fallen by more than 10 percent in Austin, Texas, as the nation’s housing market continued cooling down from pandemic-era highs, according to an August market report from Zillow.
Nationwide, home values grew 0.2 percent from July to August, Zillow said, a much slower rate of growth than the past four months. Prices are now up 1.3 percent compared to August 2022.
The inventory of new listings actually rose slightly (4 percent) from July to August, which Zillow called “unusual.” Still, there were 12.7 percent fewer new listings last month than in August 2022, and inventory remains well below pre-pandemic levels.
“This unusual late-summer boost to supply should help to ease market conditions even more than the seasonal cooldown expected at this time of year,” Zillow said in the report. “Total inventory remains low, but it bears watching to see if this marks the start of some modest relief for the bone-dry listings drought that began in earnest in July 2022.”
Nearly one in four listed homes dropped its sales price, up from closer to one in five homes in July.
Homes are still selling quickly, at 13 days to go pending. That’s actually down from 15 days in August 2022, Zillow said. Still, the number of homes marked as pending dropped by nearly 19 percent compared to a year earlier.
Austin leads the way down
Home values are now 11.4 percent lower in Austin, Texas, than they were in August 2022, Zillow said.
Prices fell in 21 of the 50 largest metro areas tracked by Zillow. Prices were also down 8.7 percent in New Orleans, 6.4 percent in Phoenix and Las Vegas, and 4.2 percent in San Francisco.
Values appear to still be falling in several of those cities, as month-over-month values fell 1.4 percent in New Orleans and 1 percent in Austin.
Home values rose in the other 29 metros, led by Hartford, Connecticut (9.9 percent), Milwaukee (8.1 percent), Virginia Beach (5.7 percent) and Philadelphia (5.5 percent).
