In recent years, many prospective homebuyers have encountered difficulties when trying to enter the real estate market. While the housing market is not currently experiencing a significant slowdown, there are several factors that indicate a cooling down of the market. However, this cooling down can actually be advantageous for those who are looking to purchase a new home this year.
It is worth noting that certain housing markets may be overvalued, and some of the metropolitan areas mentioned in this context might fall into that category. According to Forbes, there are signs indicating an upcoming decline in housing prices. For instance, in March 2023, there was a decrease in mortgage rates, and the home sales prices in February experienced a year-over-year decrease, something that hadn’t occurred in almost 11 years. These factors suggest a potential decline in housing prices until March 2024.
To provide more insights into this topic, GOBankingRates conducted an in-depth study to identify the metropolitan areas where housing prices are projected to begin declining until March 2024. The study involved the analysis of data from Zillow for the 100 largest metros. Various important data points were collected, including the typical home value for all homes in March 2023 and the projected percentage change in typical home value from the previous year. By utilizing this data, it was possible to determine the projected typical home value for all homes in each metro area for March 2024, as well as the projected monetary change in home value from March 2023 to March 2024. This information can be valuable for individuals considering a home purchase in the near future.
Sacramento, California
- Home value March’23: 554,365$
- Expected % change in home value on an annual basis: -1.7%
- Expected home value March’24: 544,941$
- Expected change in home value: -9,424$
California has gained a well-known reputation for its notoriously expensive housing market, which has been a major obstacle for aspiring homeowners in the state. However, there is a promising outlook on the horizon. Recent projections indicate that there is a possibility of a 1.70% decrease in home prices, which could have a significant impact on the housing costs. If this projection becomes a reality, it could lead to a substantial reduction of more than $9,424 in housing costs, making it much more affordable for potential homebuyers. This potential drop in housing values creates an exciting opportunity for individuals interested in purchasing a home in California, as it opens up new possibilities and expands the pool of people who can consider homeownership in the Golden State. With more affordable prices, the dream of owning a home in California may become a reality for many more people, bringing them closer to achieving their goals and building a life in this vibrant and diverse state.
Chicago
- Home value March’23: 289,344$
- Expected % change in home value on an annual basis: -1.8%
- Expected home value March’24: 284,136$
- Expected change in home value: -5,208$
Based on the most recent projections and analysis conducted by housing experts, it is anticipated that the real estate market in Chicago will experience a gradual downturn in the upcoming years. This expected downturn is expected to have significant implications for homeowners and potential buyers in the city. According to the projections, it is estimated that by March of 2024, there will be a noticeable decline in the value of residential properties, with an estimated decrease of approximately 1.8%. This decline in property value translates to a substantial decrease of $5,208 in the average home value, which can have a significant impact on the overall housing market in Chicago. As a result, both current homeowners and those looking to buy a property in the city will need to carefully consider the potential consequences of this projected decline in property values. It is crucial for individuals to be aware of this anticipated market trend and make informed decisions regarding their real estate investments in order to minimize potential financial risks and maximize their returns in the long run.
Urban Honolulu, Hawaii
- Home value March’23: 870,229$
- Expected % change in home value on an annual basis: -2,1%
- Expected home value March’24: 851,954$
- Expected change in home value: -18,275$
Hawaii, which is renowned for being one of the most costly states in the United States to buy homes, may witness a substantial downturn in home values. Experts predict that the real estate market in Hawaii could potentially face a decline of up to 2.1%, resulting in a decrease of more than $18,000 in the value of homes. This decline in home prices could have a significant impact on the housing market and the overall economy of Hawaii. It could affect homeowners, potential buyers, and even the construction and real estate industries. The decrease in home values may lead to a decrease in consumer spending and impact the financial well-being of individuals and families in the state. It is important for homeowners and those interested in the housing market to stay informed about these potential changes and make informed decisions regarding their real estate investments in Hawaii.
San Francisco
- Home value March’23: 1,111,241$
- Expected % change in home value on an annual basis: -2,3%
- Expected home value March’24: 1,085,683$
- Expected change in home value: -25,559$
The city of San Francisco, which is located near Silicon Valley, has gained a reputation for its exorbitant home prices. The combination of high demand and limited supply has led to a rapid surge in prices. However, recent indicators are pointing towards a potential decline in home values in San Francisco, with predictions suggesting a decrease of more than $25,000 within the coming year. This projected downturn could offer a rare opportunity for aspiring homebuyers who were previously unable to afford properties in this competitive market. Despite the anticipated decrease, San Francisco continues to hold its appeal as a desirable destination, thanks to its flourishing tech industry, remarkable cultural diversity, and breathtaking natural landscapes. These distinctive attributes should be taken into account when assessing the prospects of homeownership in the city.
New Orleans
- Home value March’23: 234,471$
- Expected % change in home value on an annual basis: -2,6%
- Expected home value March’24: 228,375$
- Expected change in home value: -6,096$
According to the most recent market projections, experts are predicting a modest decline in home prices in New Orleans. It is estimated that there will be a decrease of approximately 2.60%, resulting in a reduction of around $6,100. This anticipated decrease in prices is expected to have a positive impact on the city, as it will make it more appealing and attainable for individuals who are interested in investing in real estate or purchasing a home. Moreover, the decrease in prices will also stimulate the local economy by encouraging more people to move to the city and contribute to its growth. With the affordability of homes increasing, a greater number of people will have the opportunity to fulfill their aspirations of owning a home in this vibrant city, leading to a stronger sense of community and a thriving real estate market.
San Jose, California
- Home value March’23: 1,432,530$
- Expected % change in home value on an annual basis: -2,6%
- Expected home value March’24: 1,395,285$
- Expected change in home value: -37,246$
San Jose, a suburban city located in the heart of Silicon Valley, is well-known for its high-cost housing market. However, recent projections suggest that the property values in San Jose might be heading towards a decline. According to the forecasts, by March 2024, it is estimated that the average home in San Jose could potentially experience a decrease of up to 2.6% from its current value. This decline could have a significant impact, with homeowners potentially facing a loss of more than $37,000. This downward trend in housing prices highlights the ongoing challenges faced by individuals in affording homes in the region, further exacerbating the issue of unaffordability in Silicon Valley.
Baton Rouge, Louisiana
- Home value March’23: 215,328$
- Expected % change in home value on an annual basis: -2,7%
- Expected home value March’24: 209,515$
- Expected change in home value: -5,814$
Baton Rouge is expected to experience the biggest drop on the list, with a projected decrease of 2.7% in home values. This decline is significant and may be a cause for concern for homeowners in the area. However, it is important to note that home values in Baton Rouge are relatively low compared to other areas. Despite the projected drop of 2.7%, the overall home values in Baton Rouge would still remain affordable for potential buyers. It is worth mentioning that the decrease of around 2.7% would translate to a decrease of approximately $5,814 in home value, which, although not insignificant, may not have a major impact on the overall housing market in the city. Nonetheless, homeowners in Baton Rouge should keep an eye on the situation and consider their options carefully in order to make informed decisions regarding their properties.
