Boomtowns See the Sharpest Home-Price Slump as Market Cools

As mortgage rates stay high and inventory rises, U.S. home prices per square foot fell 1.8% year over year in August, with the steepest declines in former pandemic boomtowns like Austin (-8.1%), Tampa (-5.6%), and Memphis (-4.1%). Some metros such as Providence, Indianapolis, and Chicago posted gains, while regional median listing prices are down in the Northeast, South, and West and flat in the Midwest. San Francisco also saw a drop in price per square foot (-3.9%) amid high prices and tech-sector shifts. The market is rebalancing as sellers adjust prices to a larger, more available inventory, and the trajectory will depend on local economies and mortgage rates through the autumn buying season.