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After reaching unsustainable highs in the first months of 2022, home prices began falling in a few overheated markets at the end of the year, and with an accelerated correction on the horizon, these destinations could see even bigger changes ahead. Omaha, NE saw the biggest year-over-year price gain of any metro area tracked by Realtor.com in 2022 with a 21.6% increase in price per square foot, bringing its mid-Dec. 2022 median listing price to $342,500.
On the contrary, prices fell the fastest in Boise, ID, a mid-pandemic homebuying hotspot that has since seen major price reductions in response to waning demand. Price per square foot fell 5.8% year-over-year in Boise throughout 2022, while the percentage of homes with price cuts rose 100.9%, according to Realtor.com.
The skyrocketing prices in Boise reflected the surge in demand for places that offered affordability, relative to big coastal metropolitan areas that many buyers were moving from.
Realtor.com economist Ratiu says it’s no surprise to see Boise leading the country in price declines since hiked interest rates put the brakes on the market.
“The run-up in prices in a place like Boise, where there was such an inflow of new buyers, was tremendous, [especially] when you look at the size of the market or the local incomes,” Ratiu says. “The prices were out of alignment.”
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