T
he real estate market has been challenging for prospective homebuyers over the past year, with high prices, interest rates, and low supply discouraging many from making a purchase. However, experts predict that some areas will see a decline in real estate prices before the end of 2024, offering a potential reprieve for those shopping for homes.
According to GOBankingRates, the following cities are expected to experience the largest drops in home values by year-end:
San Francisco, California: Prices may decrease by 5-10% due to outmigration as people leave the city for lower cost of living and remote work options.
New York City: The high cost of living and flexibility of remote working have led to weak demand for residential property, potentially causing prices to drop.
Honolulu, Hawaii: Home prices could decline by 4-6% as the island's tourism industry struggles to recover from the pandemic.
Other cities expected to see significant price drops include:
Miami, Florida: Environmental factors such as rising sea levels and insurance concerns are scaring away investors and driving down prices.
Las Vegas, Nevada: The city's dependence on tourism and entertainment has led to a decline in home values, which could drop by 4-7% by year-end.
Chicago, Illinois: Crime rates and high property taxes are contributing to the decline in the Windy City's housing market, with prices potentially sliding by 2-4%.
Seattle, Washington: The high cost of living and possibility of working from home have driven people out of the city, leading to a potential 3-5% drop in home values.
Austin, Texas: New construction projects and increased inventory are contributing to a dip in home values, which could reach up to 2-4%.
St. Louis, Missouri: Home prices have been declining since last year, with increased taxes in some municipalities being a contributing factor.
Washington, D.C.: A shortage of home buyers due to mortgage rates and economic issues may lead to a 3-5% drop in prices by year-end.
