Home Prices Plateaued in October as Rising Mortgage Rates Put Pressure on Buyers’ Budgets

The typical U.S. home value rose just 0.1% in October as the number of newly pending listings fell a staggering 35.1% year-over-year, according to Zillow. Tight inventory sustained elevated prices, though some formerly red-hot housing markets posted small but steady declines throughout October.

Las Vegas, Austin, and Raleigh saw the largest monthly changes with price drops of -2.3%, -2.2%, and -1.1%, respectively. On the flip side, home prices continued to rise in affordable metros like Milwaukee, Hartford, and Kansas City, which saw gains of 0.9%, 0.9%, and 0.8%, respectively.

Taking stock of changes over the last 12 months, a much different picture comes into focus: All four of the major markets with the greatest year-over-year home value appreciation are in Florida: Miami (23.3%), Tampa (21.2%), Orlando (20.9%), and Jacksonville (19.8%). At the other extreme are markets where prices are practically flat from this time last year: San Francisco (1.9%), Austin (2.3%), and Pittsburgh (3.4%) had the lowest annual home value growth among the 50 largest metropolitan areas. Among the top 100, just one market was lower: Boise, where home values are now 4.2% lower than this time last year.

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