Home prices fall in the West while rise in the East in unusual pattern

The East Coast–West Coast rivalry is typically associated with rappers or sports teams, but now the divisions are extending to…the housing market.

Just like the sun, home prices are dropping in the West while rising in the East,?according to the Wall Street Journal. This stark geographical split is extremely unusual and highlights Covid’s role in shuffling people around the country in weird ways. The key stats:

• West of Texas (but including Austin), home prices in the 12 major housing markets fell in January on an annual basis, data from Black Knight showed.
• But home prices?increased?in the 37 largest metros east of Colorado (excluding Austin).

What’s going on??Western “Zoom Towns” that welcomed an influx of residents during the pandemic (think Boise) saw their bubbly home prices start to pop as mortgage rates spiked. Plus, the tech hubs that were so dang unaffordable even before Covid (SF, San Jose) have taken a hit from the recent downturn in the sector.

Meanwhile, on the East Coast, consistent?job growth, tight housing inventory, and the fact that many cities there?didn’t?see a ludicrous price boom during Covid are helping push prices higher.

Big picture:?Nationally, the median home price?dropped annually?in February for the first time in more than a decade, and experts predict more year over year declines in many markets.