House Prices Are Falling More Than 5 Percent in These Six Cities

House prices continued falling in some of the most expensive areas in the country in June as homebuyers are still struggling to keep up with high mortgage costs, according to new data from Zillow.

In six cities out of the 30 largest metropolitan housing markets in the country analyzed by Zillow, as reported by Fortune journalist Lance Lambert on Twitter, prices have dropped by over 5 percent last month compared to the same period the previous year.

In the pandemic boomtown of Austin, Texas—the city which has experienced the deepest decline—home prices dropped by 10.45 percent between June 2022 and June 2023, and 10.55 percent from the peak reached during the pandemic. In San Francisco, California, home prices dropped by 9.17 percent during the same period, which was also the city's peak.

In Sacramento, California home prices dropped by 6.87 percent between June 2022 and June 2023, while in Phoenix, Arizona, they plunged by 6.74 percent. In Las Vegas, Nevada, they tumbled by 6.67 percent.

The sixth city where home prices dropped by over 5 percent year-on-year was Seattle, Washington, where they plunged by 6.52 percent in June 2023 compared to June 2022, according to Zillow.

These metros were among the most expensive in the entire country during the pandemic, before affordability became a problem for many aspiring homebuyers and brought down both demand and prices.

Only Austin, among the cities listed above, saw home prices dropping between May and June 2023, with the Texas city reporting a 0.21 percent drop.

In Austin, the average price of a home was $567,255 in June. In San Francisco, it was $1,285,602. In Sacramento, it was $466,942. In Phoenix, it was $412,402. In Las Vegas, it was $395,715. In Seattle, it was $841,919.

At the same time, the national average for the price of a U.S. home has risen in June, according to Zillow, at $348,853—up 1.2 percent compared to the previous year. Jeff Tucker, Zillow senior economist, previously told Newsweek that prices are rising nationally because inventory remains low, pushing prices up.

"Typical home values for the nation are at an all-time high and are currently growing at a normal, pre-pandemic rate," Mark Stayton, senior public relations specialist at Zillow, told Newsweek.

"Although many buyers have been pushed out of the market by high mortgage rates, those that remain are competing for relatively few options, which has kept price pressure up," he added.

"Home owners by and large are choosing not to list their homes, preferring instead to hold onto their current houses and low mortgage rates. This has slowed sales too—71 percent of sellers also become buyers, and those shopping can't buy homes that aren't on the shelves."

Stayton said that for both buyers and sellers, affordability is currently the number one consideration.

"Markets that slowed down the most over the last year are either some the most expensive, or saw the largest jump in home values over the course of the pandemic," he said. "Declining home values in these areas is progress toward a more balanced market, and the vast majority of homeowners will still be sitting on massive equity accrued over the last few years."

Correction 7/31/23 6:45 a.m. ET: This article was corrected to show that only Austin, among the cities listed, saw home prices dropping between May and June 2023. It was also updated with comments from Zillow.