Housing prices plunge fastest in major U.S. metros, surprising many cities

The U.S. housing market entered a late-summer cooling phase, with price-per-square-foot figures falling for ten consecutive months and a 1.8% national year-over-year decline. In August, 36 of the 50 largest metros recorded lower median list prices per square foot, led by Austin, Texas (-8.1%), Tampa, Florida (-5.6%) and Memphis, Tennessee (-4.1%). Gains were limited to places such as Providence, Rhode Island (+9.3%) and Indianapolis (+4.4%).

Analysts attribute the downturn to a surge in inventory that now exceeds pre-pandemic levels, especially in former boomtowns like Austin, San Antonio and Denver. The San Francisco market, while still pricey, saw a 3.9% price drop amid fewer small, high-priced homes and more larger, cheaper-per-square-foot properties in the suburbs. Local real-estate agents also note that tech-sector layoffs and a weak stock market are dampening buyer confidence, further pressuring prices.