Which West Coast Hotspot Are Cooling The Fastest?

Consider a tech bubble burst of a different sort. 

Redfin has found that housing markets in tech hubs are slowing more rapidly than Connecticut, upstate New York and parts of the Midwest. In particular, West Coast hotspots including Seattle and San Jose, along with Austin and Phoenix, are among the metros with the fastest-slowing housing markets.

Austin cooled fastest over the last year as the U.S. housing market descended from its pandemic-era boom. Austin is followed by Seattle, Phoenix, Tacoma and Denver. 

Las Vegas, Stockton, San Jose, Sacramento and Oakland  round out the top 10, per Redfin. 

The typical San Jose home sold for just 0.6 percent above its asking price in February, compared with 12 percent  above asking price a year earlier–the biggest percentage-point dropoff in the U.S. Seattle had the third-biggest dropoff, going from 8 percent above asking price to 1 percent below during the last year. 

Pending home sales declined 40 percent year-over-year in Seattle, and they were down 38 percent in San Jose.