10 Coldest Housing Markets in the U.S. for 2022 and 2023

Does the quickly cooling real estate in these cities portend a housing market crash nationwide?

10 Coldest Housing Markets in the U.S. for 2022 and 2023

We've covered the hottest housing markets in the U.S., but what cities are hurting at the end of 2022 and heading into 2023?

Rising interest rates and overall home prices have put the brakes on many a city, particularly in the western half of the U.S. Perhaps it's just a correction, but how long it lasts remains to be seen.

These are the fasting cooling housing markets, according to a report from Redfin.

10. San Francisco, California

Median listing price: $1.62 million

* Median listing prices come from Redfin's September 2022 housing markets report.

Bottom Line: San Francisco, California

The high cost of living and increasing crime incidents are big drivers for the exodus from San Francisco.

According to the Redfin report, mortgage rates for homes have nearly doubled since the beginning of the year, and with people doing more remote work, the need to stay in the city has lessened.

Many tech workers have left for cheaper homes in states like Texas, New Mexico and Montana. In summer 2022, more homeowners left the City by the Bay than any other metro area in the country.

9. Tacoma, Washington

Median listing price: $575,000

Bottom Line: Tacoma, Washington

Home prices and sales are dropping in Tacoma, largely due to higher interest rates. In July 2022, nearly 18 percent of buyers backed out of a home purchase in the city and its surrounding areas.

The volume of homes sold has dropped significantly this year (by 35 percent from 2021), and homes are taking double the time to sell.

8. San Diego, California

Oceanfront Condominiums in San Diego County

Median listing price: $875,000

Bottom Line: San Diego, California

High prices are driving people away from “America’s Finest City." In 2022, there has been a nearly 35 percent decline in home sales in comparison to the year before. And those homes that do go up for sale are on the market twice as long as they were in 2021.

Many of those who love the San Diego vibe and can't afford it have actually moved south to Mexico. According to the Mexican Association of Realtors, 75 percent of residents in the Tijuana neighborhood of Real Del Mar are Americans, with 80 percent coming from the Golden State.

7. Denver, Colorado

Median listing price: $612,000

Bottom Line: Denver, Colorado

Denver was a seller's market in recent years, but rising interest rates have crushed its real estate, as potential buyers are waiting longer to commit and are looking for bargains.

There are more homes on the market in the Denver area at the end of 2022 than there have been in two years.

6. Boise, Idaho

Median listing price: $550,000

Bottom Line: Boise, Idaho

Once a dream location for people wanting to leave larger metros behind during the pandemic, the housing market in Idaho’s capital is positively frigid at the end of 2022.

“Boise has the sixth-lowest ratio of number of sold houses to new listings (0.49), meaning that almost twice as many houses are being listed relative to ones that are sold,” according to SmartAsset.

5. Stockton, California

Sunset aerial view of downtown Stockton, California

Median listing price: $576,000

Bottom Line: Stockton, California

Aerial Shot of Civic Center Area of Stockton, California

Stockton was on the upswing at the beginning of the pandemic, but like other California cities, its homes are dropping in price and on the market longer than they were in recent years.

The city also has a high crime rate, above-average homelessness, a municipal budget stretched far too thin and high unemployment. Many residents of Stockton have ended up commuting to the Bay Area for work, and as gas prices stay high in California, it's not exactly a dream destination.

4. Seattle, Washington

Detached houses and green front yards in Queen Anne district, Seattle, Washington

Median listing price: $850,000

Bottom Line: Seattle, Washington

Inflation has put the squeeze on Seattle, making it one of the fastest-cooling real estate markets in the country.

Seattle has long been pricey due to the influx of tech workers in the early 2000s. But, despite this, the city saw a big influx of residents during the early days of the pandemic.

Now that the dust has somewhat settled, housing sales have slowed down considerably.

3. Oakland, California

Median listing price: $1.07 million

Bottom Line: Oakland, California

As interest rates continue to climb with no end in sight, Oakland is yet another area in Northern California where the housing market is cooling quickly.

Of the Bay Area cities, Oakland has seen the greatest price increase in real estate, resulting in cooling home sales. The median price was $850,000 in 2020 and $950,00 in 2021, and it is now over $1 million.

With numbers like these, potential new homeowners simply can't afford to live here.

2. Sacramento, California

Median listing price: $610,000

Bottom Line: Sacramento, California

It was once hot, but now it's not. Sacramento was an affordable place for former Bay Area residents who were priced out, but an influx of people and rising interest rates put the skids on Sacramento's home sales.

November 2022 boasts the lowest number of home sales for November in the past 20 years. According to local appraiser and housing analyst Ryan Lundquist, the market is now "even worse than 2007."

Median home prices in the area have also slipped by about $75,000.

1. San Jose, California

Aerial view of residential neighborhood in San Jose

Median listing price: $1.56 million

Bottom Line: San Jose, California

Of all the California cities, San Jose's real estate market has been hit the hardest, as homebuyer demands have dropped off quicker here than in any other city in the Golden State.

The home supply in the area was just 10 percent in recent years, but it is now at 43 percent, as fewer buyers are taking on homes. That means there's a higher number of price reductions and lower demand for homes in the area overall.