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As real estate and real estate-related companies continue to cut their workforces, it's become clear that it's no mirage -- the housing market is indeed cooling. Another sign? The real estate giant Redfin has experienced a nearly 92% drop in stock value since last year.

While homes are still more expensive today than they were before COVID-19 changed the world, demand is slowing, and prices are dropping. Redfin recently released data showing which markets are cooling at the fastest rate. What was a seller's market is quickly flipping to a buyer's market in these areas of the country:


Metro Area

Median Sale Price



Metro Area

 Median Sale Price


Seattle, Washington


  11 Austin, Texas   $500,000 


Las Vegas, Nevada


  12  Raleigh, North Carolina  $435,000


San Jose, California


  13   Cape Coral, Florida  $392,000


San Diego, California


  14 (tie)  Stockton, California  $550,000

5 (tie)

Sacramento, California


  14 (tie)  Portland, Oregon  $535,000

5 (tie)

Denver, Colorado


  16   Bakersfield, California  $350,000


Phoenix, Arizona


  17   Jacksonville, Florida $365,000 


Oakland, California


  18   Tampa, Florida  $377,000


North Port, Florida


  19   Orlando, Florida  $391,778


Tacoma, Washington


  20   Dallas, Texas $430,000 


Data source: Redfin

Rising interest rates

The most apparent reason for cooling markets is rising interest rates. The Federal Reserve raises interest rates in response to inflationary concerns. The higher the rates, the fewer people compete for the same asset (in this case, housing). Fewer buyers competing for housing means fewer bidding wars and softer prices.

As an example of how rising interest rates have cooled buyer enthusiasm, we'll look at Austin, Texas. A year ago, if a buyer purchased a $500,000 home in the city, their principal and interest payment would be $2,108 per month, thanks to an interest rate of 3%. Today, that same mortgage would carry a rate of around 6%, and the monthly principal and interest payment would be $2,998. The jump in payment is enough to make some buyers ineligible for a mortgage and others hesitant to jump into the fr

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