A difficult real estate market plagued by high prices, high mortgage rates and a lack of supply has left many prospective home buyers disappointed over the past year.
Homebuyers have been frustrated for the past few years as experts predict that real estate prices will fall in certain regions by the end of the year, but relief appears to be coming in the coming months.
Here are the 10 real estate markets expected to decline the most by the end of 2024, according to experts
Personal finance website GOBankingRates says the markets most likely to see the biggest declines in prices as the year ends are those that have historically held some of the most expensive real estate in the country.
These inflated prices are exactly what drives buyers away, ultimately leading to a lack of demand and a subsequent drop in price tags.
According to GOBankingRates, the cities where home prices are expected to decline the most are:
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San Francisco, California
The expensive city could see prices fall by 5% to 10% this year due to the exodus. People are leaving cities because of the high cost of living and the option to work in remote areas.
new york, new york
The high cost of living in the Big Apple and the flexibility of remote work are also contributing to weak demand for residential real estate.
Honolulu, Hawaii
House prices could fall by 4-6% by the end of the year, as the island’s tourism industry has yet to get back on track since the pandemic.
Miami, Florida
Considering the natural disasters that the state has recently experienced, environmental factors have led to a decline in prices in the city. Rising sea levels and insurance concerns are also scaring real estate investors.
Las Vegas, Nevada
Home prices could fall between 4% and 7% as the city, which relies heavily on tourism and entertainment, continues to recover from the pandemic.
Home prices have officially fallen in about one-third of America’s metros.
The states with the largest declines in value in August 2024 were Texas, Louisiana, and Florida.
The bluer the area, the lower the price.
Source: Zillow HVI pic.twitter.com/MQF3gNCimR
— Nick Gurli (@nickgerli1) September 14, 2024
Chicago, Illinois
Crime rates and high property taxes are contributing to the Windy City’s housing market slump, with prices potentially falling by 2% to 4%.
Seattle, Washington
The high cost of living and the possibility of working from home have encouraged people to move out of cities. House prices could fall by 3% to 5%.
Austin, Texas
In Austin, new construction projects and increased inventory are reasons why home prices could fall by the end of the year.
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St. Louis, Missouri
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Home prices in St. Louis have been falling since last year and are likely to continue falling through the end of 2024. One reason for the decline is tax increases in some local governments.
Washington DC
Mortgage rates and economic issues have created a shortage of homebuyers in the area. Prices could fall by 3-5% by the end of the year.
