The past five years have seen a huge difference in the housing market in the United States and many other countries around the world.
There have been several fluctuations that have happened since the COVID-19 pandemic that have made people unsure of the future of the housing market in the U.S. However, experts seem to know how it will swing soon.
The Housing Market
Right now, most of the housing markets in the U.S. are on the high side. Houses are priced really high, and people are having second thoughts about buying them. What’s more, mortgage rates are also through the roof.
However, experts believe this is only temporary because they predict that many major markets will see a huge decline soon. For those considering buying a new property or looking to move, you should keep an eye on these markets.
San Francisco
According to Ben Johnson, a real estate agent and CEO of Big Ben, San Francisco’s housing market is about to decline significantly. He said, “The high cost of living, with outmigration and a trend where most tech companies are allowing some workers to work remotely, has seen San Francisco’s real estate market begin to fall.”
Therefore, the values of homes in California City could drop by 5%- 10% by the end of 2024.
New York
Johnson also spoke about New York City, citing reasons similar to San Francisco’s as the cause of its predicted decline. “The rental market also gets softer, following [weaker] demand for residential property,” and this is causing a notable fall. The average price of a home in New York City is about $742,930.
According to Johnson, this could be reduced by 5%-8% by the end of the year, making it much cheaper for those interested.
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Honolulu
Honolulu is Hawaii’s main gateway to the rest of the world. With its booming economy, the housing market is not cheap, as an average home costs about $794,253. However, Johnson predicts it may drop by 4%-6% by the end of 2024.
“Honolulu’s housing market is expected to simmer down with the tourism industry — an important pillar in the local economy — remaining out of gear,” he noted. If correct, this is a significant decline for the expensive city.
Miami
Miami, Florida, is one of those cities that is always in high demand. Just last year, the average home cost went up 8.7% to $579,125. However, environmental factors in the city might cause home values to reduce by 3%- 5%.
The market is being threatened by “overvaluation and the steadily rising sea levels,” causing investors to try to avoid Miami entirely. As it continues to feel the impact of climate change, people are less interested in Miami’s aesthetics and more in its longevity.
Las Vegas
It is common knowledge that Las Vegas, Nevada, relies heavily on tourism and entertainment, significantly raising the prices of its housing markets. Right now, an average home in Las Vegas costs $422,880.
However, Johnson predicts a drop in the near future since the pandemic significantly dropped the prices in that area. According to Johnson, this could go as low as 4%-7% by the end of 2024, making it more affordable for those interested.
Chicago
“Chicago’s housing market may see a decline as population growth stagnates and the city faces fiscal challenges,” Johnson said. According to him, the high property taxes, lack of population growth, and high crime rates in Chicago are responsible for the decline in the real estate market.
Now, the price of an average home in Chicago sits at $298,397 but could fall by 2%-4% by the end of 2024, making it cheaper for those who want to move there.
Seattle
Like New York City and San Francisco, Seattle is a popular city most people love. However, Johnson notes that “both high living costs and the shift to remote work in the tech industry are cooling Seattle’s market.”
Therefore, houses currently at an average price of $884,828 could go down by 3%- 5% as more people choose not to live in Seattle anymore and move to cheaper cities.
Austin, Texas
According to Eric Preston, the CEO and founder of Agent Launch, the average home price in Austin has already changed this year. In May, it was valued at $650,000; now, it is at $567,000.
If his predictions are correct, the median sale price will reduce to $550,000 or even much lower by the end of 2024. Therefore, those interested in relocating to Austin, Texas, need to keep monitoring the market keenly.
ALSO READ: Austin Home Realtor Says Homeowners Are ‘Screwed’ as the Real Estate Market Plunges
St. Louis
Preston also revealed that the median price of homes in St. Louis is currently about $221,000. This is a notable drop; it has decreased by 2.2% since 2023. Furthermore, Preston predicts it will decrease even more by the end of this year to about $200,000.
This is thanks to the fact that “St. Louis has been experiencing an affordability crisis due to rising taxes in some municipalities,” making it hard for people to buy houses off the market.
Washington, DC
According to Preston, the housing market in Washington, DC, is also predicted to decline by the end of 2024. He says that “a lack of buyers due to mortgage rates and economic issues are the main culprits” of this decline.
Preston predicts a huge decline of about 10% by the end of the year, which is a great opportunity for those looking to move. The average home price currently sits at $602,000, and if care is not taken, there could be an additional 3%—5% decrease by the end of 2024.
What to Do with These Declines
For those looking to move to any of the cities above, now is the time to monitor the real estate market. Monitor the falls and take advantage of the record lows predicted for this year.
This way, one can move to their dream city and still save thousands of dollars while at it. If you see an offer you can afford, grab it while it lasts, as prices may increase next year in some areas. Is your dream city on this list?
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