Home for sale in Poway
FILE PHOTO – A home for sale in Poway. Photo by Chris Jennewein

The U.S. has lost 58 “million-dollar” communities — areas where the typical home is worth $1 million or more — since the housing market peaked last July, a new analysis shows.

One of them is in San Diego County, in Bonita, where that home value has dipped to about $993,500, according to Zillow.com.

The seven areas in the county where the typical home value remains above $1 million are Carlsbad, Coronado, Del Mar, Encinitas, Poway, Rancho Santa Fe and Solana Beach. 

Across the nation in the six months after the peak, the typical home in million-dollar cities lost an average of $114,500 in value. 

Last year, a record number of cities and communities reached the million-dollar value mark amid supercharged housing demand. But both demand and supply hit the brakes in the second half of 2022 after mortgage rates rose.

Buyers, stretched thin, flocked to lower-priced homes, a reversal from earlier in the pandemic, but higher borrowing costs offset the savings.

A Zillow analyst, Anushna Prakash, described the current conditions, on the cusp of prime home shopping season, as “a much friendlier environment to buy a home for those who can make the finances work.”

“Sellers may have missed the market’s peak, but they can still get a higher price for their homes than last year in most markets, and certainly more than they would have before the pandemic,” Prakash added.  

The typical U.S. home is worth 4.1% less than it was last July, according to the Zillow Home Value Index. In current million-dollar cities, such a home on average has lost 6.3% of its value. 

Thirty-two states are home to at least one million-dollar city. There were 33 states with one such city last summer, but Montana’s lone million-dollar area, Gallatin Gateway, fell off the list.  

Coastal states continue to dominate. Of the 464 current million-dollar communities, 387 are in a state on either U.S. coast. California alone has 190, more than the next six states combined.

California also has lost 20 million-dollar communities since July, more than any other state. Texas and New Jersey are next, losing five each.

At the metro level, the New York City area has the most million-dollar communities, with 90. San Francisco (67), Los Angeles (53) and San Jose (21) follow.