Tech layoffs are pulling down home prices in the West, but it’s another story in the South

The company is forecasting annual U.S. home price gains to slow further to 3.7% by February 2024. On a month-over-month basis, home prices rose by 0.8% in February. 

But some parts of the country are feeling the slowdown more acutely: CoreLogic said eight states and districts saw annual home price losses. 

“Much of the depreciation [was] seen in the relatively expensive Western U.S., including California, Idaho, Oregon, Washington and Utah,” the report said. 

The company attributed the slowdown to tech layoffs, which have slowed demand. 

Across the U.S., home price growth has been “holding steady,” CoreLogic said, in large East Coast metro areas amid a big return-to-work push by employers.

Pockets in the South are also doing well, CoreLogic said.

“The divergence in home price changes across the U.S. reflects a tale of two housing markets,” Selma Hepp, chief economist at CoreLogic, said in a statement. 

“Declines in the West are due to the tech industry slowdown and a severe lack of affordability after decades of undersupply,” Hepp explained. 

“The consistent gains in the Southeast and South reflect strong job markets, in-migration patterns and relative affordability due to new home construction,” she added.

Miami posted the highest annual price growth out of the 20 most tracked metros in the U.S., at 15.6%. Tampa, Fla. ranked second, with 9.3%.

Looking at states, Florida clinched the top spot, reporting 11.3% in annual price gains. Maine was second place, followed by South Carolina.

CoreLogic also flagged top markets at risk of a home price decline, which include the following:

1. Provo-Orem, Uta

2. Ogden-Clearfield, Utah

3. Salt Lake City, Utah

4. Lakeland-Winter Haven, Fla. 

5. Boise City, Id.