High home prices compounded with higher mortgage rates last year and a consistent lack of supply led to aAerial image of a neighborhood in Cedar Park, a suburb of Austin, Texas. Austin was the only city to experience a decline in home prices between April and May compared to 99 of the largest housing markets in the U.S. that saw a house price increase, according to data tracked by Black Knight, a leading provider of financial/ mortgage software.
Last fall marked the peak of the housing correction, according to Fortune, when 92 of the country's 100 largest housing markets tracked by Black Knight saw a month-over-month price decrease in October. Austin is experiencing a correction phase due to strained fundamentals, specifically a wider-than-average gap between local house prices and local rentals, according to Fortune. Thorough remodeling levels and investor speculation also contributed to Austin being pushed to a correction mode, even though the city's home values remain over 40 percent since March 2020.after home prices dropped faster than any city in the country, including San Francisco.