--- title: The 12 Cities Where Home Prices Dropped the Most in 2022 description: After years of a hot housing market, home prices are dropping in cities like San Francisco, Sacramento, Los Angeles, Seattle and Austin. authors: - name: Sarah Hansen role: Senior Writer url: https://money.com/author/sarah-hansen/ bio: Sarah Hansen is a senior writer at Money covering all things personal finance. Previously, she covered economic policy and capital markets on the breaking news desk at Forbes. education: Northwestern University, New York University at_money_since: 2021 articles: 347 covers: - Housing - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes social: - https://www.linkedin.com/in/sarah-m-hansen/ former_staff: true editors: - name: Brad Tuttle role: Senior Editor url: https://money.com/author/brad-tuttle/ bio: Brad Tuttle is a former senior editor at Money with over 10 years’ experience covering a vast number of personal finance topics, including careers, cars, travel, budgeting, investing, insurance, credit cards, consumer psychology, real estate, banking, and shopping and deals. education: Columbia University School of Journalism, MS at_money_since: 2014 articles: 366 covers: - Housing - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes - Technology social: - https://twitter.com/bradrtuttle - https://linkedin.com/in/brad-tuttle-834b225 former_staff: true published: '2023-01-06T17:19:41.000Z' modified: '2024-01-10T14:30:48.000Z' section: Housing tags: - News word_count: 458 canonical: https://money.com/cities-where-home-prices-dropping-most/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![A photo of San Francisco streets, California.](https://img.money.com/2023/01/News-Home-Prices-Are-Dropping-SF.jpg) The second half of 2022 brought major changes for homebuyers. After two years of record-breaking growth, soaring [mortgage rates](https://money.com/current-mortgage-rates/) threw a bucket of cold water on the red-hot market. As the cost of borrowing rose, demand plummeted. Inventory levels nudged slightly higher, [competition eased up](https://money.com/housing-market-cooldown-bidding-wars/), and sales slowed down as buyers backed out of deals and sat on the sidelines. As a result, the double-digit price appreciation that characterized much of 2020 and 2021 ground to a halt. Experts are predicting that the [housing market in 2023](https://money.com/housing-market-2023-expert-predictions/) will feature low inventory and home prices that level off or perhaps even fall. In some cities, that's already happening. ## Where home prices are dropping the most Here are the 12 cities (out of the 50 most populous cities in the United States) where home prices fell the most over the last year, along with the amount they fell, according to [new data](https://www.redfin.com/news/housing-market-update-pending-home-sales-drop/) from real estate brokerage Redfin: 1. San Francisco, California: -10.4% 2. Sacramento, California: -6% 3. San Jose, California: -5.6% 4. Los Angeles, California: -5.4% 5. Detroit, Michigan: -4.6% 6. Oakland, California: -4.4% 7. Seattle, Washington: -4.2% 8. Pittsburgh, Pennsylvania: -3.9% 9. Austin, Texas: -2.9% 10. New York, New York: -2.8% 11. Phoenix, Arizona: -2.4% 12. Boston, Massachusetts: -2.2% Five of the 12 cities are in California, which is home to some of the most expensive real estate markets in the country. Falling prices there could spell good news for buyers who can afford to borrow at today’s rates. But be wary — there are other forces at work in the market that will continue to make [buying a house](https://money.com/how-to-buy-a-house/) challenging. Seattle Redfin agent Shoshana Godwin believes the market will get a little more competitive in the months to come. “I expect new listings to remain scarce as homeowners hold onto low interest rates,” she said in a blog post, “while the pool of determined buyers circle\[s\] the few homes that are available.” ## Will home prices keep falling in 2023? Experts generally agree that home price growth will slow down on a national level in 2023, but there’s no clear consensus about whether prices will actually fall. Realtor.com chief economist Danielle Hale [predicts that home prices will rise](https://money.com/home-prices-mortgage-rates-forecast-2023/) by 5.4% this year, for instance, while Taylor Marr, deputy chief economist at Redfin, forecasts that median [home prices will drop](https://money.com/housing-market-2023-expert-predictions/) by about 4% compared to 2022. That difference of opinion underscores just how difficult it is to predict where the housing market is headed, as well as how important it is for buyers to understand the dynamics at play in their own local markets. ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/cities-where-home-prices-dropping-most/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Housing", "item": "https://money.com/housing/" }, { "@type": "ListItem", "position": 3, "name": "Home Prices", "item": "https://money.com/home-prices/" }, { "@type": "ListItem", "position": 4, "name": "The 12 Cities Where Home Prices Dropped the Most in 2022" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/cities-where-home-prices-dropping-most/#webpage", "url": "https://money.com/cities-where-home-prices-dropping-most/", "name": "The 12 Cities Where Home Prices Dropped the Most in 2022", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2023-01-06T17:19:41.000Z", "mainEntity": { "@id": "https://money.com/cities-where-home-prices-dropping-most/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/cities-where-home-prices-dropping-most/#breadcrumb" }, "dateModified": "2024-01-10T14:30:48.000Z" }, { "@type": "NewsArticle", "headline": "The 12 Cities Where Home Prices Dropped the Most in 2022", "articleSection": "Housing", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2023/01/News-Home-Prices-Are-Dropping-SF.jpg", "width": 2121, "height": 1414, "caption": "News-Home-Prices-Are-Dropping-SF" } ], "author": [ { "@type": "Person", "name": "Sarah Hansen", "url": "https://money.com/author/sarah-hansen/", "@id": "https://money.com/author/sarah-hansen/#author", "description": "Sarah Hansen is a senior writer at Money covering all things personal finance. 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