However, the boom is now over. Prices are not as high as they once were, and in some markets, home values are even decreasing. The two-pronged attack of rising mortgage rates and escalating affordability issues is to blame, according to housing economists.
Many of the expensive metro areas, which until this spring were among the hottest in the country, are now seeing price weakness. According to CoreLogic's monthly home price index, the once-buoyant tech hubs of Northern California and Seattle are experiencing the biggest declines in home values.
Housing economists are not surprised by the decline in property values. Many have questioned how much farther prices may rise.
1. San Jose, CA: -9.4% 2. Seattle, WA: -8.2% 3. Oakland, CA: -7.6% 4. Coeur d’Alene, ID: -7.3% 5. San Rafael, CA: -6.2% 6. San Francisco, CA: -5.4% 7. Idaho Falls, ID: -4.9% 8. Boulder, CO: -4.5% 9. Logan, UT: -4.4% 10. Boise, ID: -4.3%