In 2022, housing prices soared to new records. Now two years later, cities across the U.S. are beginning to see prices correct themselves while others are still seeing price increases. According to insight from the ResiClub blog, home prices are increasing across many Northeastern cities. Trenton, N.J., topped the list with home prices increasing by 13.3% over the past two years, followed by Hartford, Conn., which saw prices increase by 12.9% during the same period. Larger markets, however, are beginning to see prices decline. Austin, Texas, for example, saw the largest dip in prices, down 18.7% in the past two years.
In Austin's market, demand has dropped harder than most markets, leading to a price correction. This bigger than average demand decline is due to pandemic-related migration inflating Austin home prices excessively. Once rates spiked, and pandemic migration slowed, those frothy prices simply put affordability too far beyond local Austin incomes. Moreover, Austin had a lot of new construction supply coming online over the past two years which made up for the pullback in new resale listings caused by the lock-in effect.
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