Oil shock keeps mortgage rates high and cools home price outlook

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Top markets clustered in Northeast, Midwest and Silicon Valley

“The strongest‑performing markets include Reading, PA; Rochester, NY; Springfield, MA; Allentown‑Bethlehem‑Easton, PA‑NJ; Rockford, IL; Hartford, CT; Racine, WI; Syracuse, NY; and Manchester, NH, alongside San Jose, CA, which stands out due to its exposure to the tech sector,” Veros said.

Reading led with a 4.2% gain, followed by San Jose–Sunnyvale–Santa Clara at 4.1%; Rochester and Springfield at 4.0%; Allentown–Bethlehem–Easton at 3.9%; Rockford and Hartford at 3.8%; Racine and Syracuse at 3.7%; and Manchester–Nashua at 3.6%.

Sun Belt boomtowns turned soft spots

By contrast, Veros said “several Sun Belt markets that saw rapid growth during the pandemic [were] now facing headwinds.”

Cape Coral–Fort Myers, Fla. (‑2.7%), Naples–Marco Island, Fla. (‑1.7%), Austin–Round Rock–San Marcos, Texas (‑1.4%), Panama City–Panama City Beach, Fla. (‑1.1%) and Pueblo, Colo. (‑1.1%) were among the weakest markets.

They were joined by Corpus Christi, Sherman–Denison and Lake Charles (all ‑1.0%), Urban Honolulu (‑0.9%) and North Port–Bradenton–Sarasota (‑0.8%).



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