Yahoo Finance 5 Cities That Are Getting Big Home Price Cuts — Should You Consider Buying There?
If you’re looking to buy a home in 2024, you probably won’t get much relief from the historically high prices and general cost of living that have dominated the housing market in recent years. The National Association of Realtors expects the national median existing-home price to climb 0.7% to $389,500 in 2024 — and other experts see even bigger increases.
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Price growth in recent months has occurred throughout the United States, but especially in the Northeast, South and Midwest, according to a report released earlier this month by CoreLogic. Demand in many of these areas has been driven by relative affordability, according to the report.
In addition, many of the country’s fastest-appreciating real estate markets “lagged in price growth during the pandemic but have recently benefited from job gains, with The Inflation Reduction Act and the CHIPs Act helping to spur housing demand.”
“This continued strength remains remarkable amid the nation’s affordability crunch but speaks to the pent-up demand that is driving home prices higher,” CoreLogic Chief Economist Selma Hepp said in a Jan. 9 press release. “Markets where the prolonged inventory shortage has been exacerbated by the lack of new homes for sale recorded notable price gains throughout 2023.”
Home buyers might not get much joy when even affordable markets are seeing price gains. But there have been some encouraging developments for buyers.
The National Association of Home Builders estimates that the combination of more single-family starts and rising mortgage rates will push many builders to reduce home prices to boost sales. Meanwhile, a survey of 1,003 Americans from Architectural Digest found that 41% of respondents plan to buy a home in 2024. While that figure might not represent the nation as a whole, it does at least indicate confidence that prices might soon stabilize.
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Most importantly, some markets are expected to see a rapid decline in home prices this year — and many of them are in Florida. CoreLogic’s analysis of sales data and price trends found that four of the five U.S. markets most at risk of home price declines are in the Sunshine State.
Here are the top five markets where you could see prices drop. Each has a 70%-plus probability of a price decline, according to CoreLogic.
Palm Bay-Melbourne-Titusville, Florida
West Palm Beach-Boca Raton-Delray Beach, Florida
Tampa-St. Petersburg-Clearwater, Florida
Deltona-Daytona Beach-Ormond Beach, Florida
Atlanta-Sandy Springs-Roswell, Georgia
The decision on whether to buy in these markets depends on many factors, including how much you want to spend and whether you are willing to relocate if need be. Some of the markets on the list are expensive compared with other parts of the country — especially Boca Raton, which ranks among the most expensive cities in Florida.
However, many of the other markets are reasonably affordable for Florida. And while Atlanta is expensive compared with the rest of Georgia, its cost of living is just a shade higher than the rest of the country, according to RentCafe. Buying homes at a discount in already-affordable markets could be a smart move.
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