The next two years are likely to cool off these housing markets, experts believe.
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People looking to buy a home may be frustrated by two recent trends, leaving them unsure of the best time to pull the trigger.
Just as the price of homes in many areas has started to cool off, mortgage rates have spiked — the rate on a 30-year mortgage has doubled since the beginning of the year, as we recently reported. So do you buy now or wait to see if interest rates come down before prices go back up? Right about now, a crystal ball would help.
While nobody can predict the future with perfect accuracy, a new analysis of 414 housing markets that Moody’s Analytics conducted for Fortune highlights the biggest price declines expected between the fourth quarter of 2022 and the fourth quarter of 2024.
Here’s a look at the cities where home prices are expected to decline the most over the next two years.
Forecasted home price change between late 2022 and late 2024: 7.6% decrease
Palm Bay is the first of several Sunshine State cities poised to become more appealing to homebuyers. That’s great news since it’s already among “11 of the Cheapest Places to Live in Florida,” with a cost of living 6.3% below the national average, according to data from Salary.com.
Forecasted home price change between late 2022 and late 2024: 7.7% decrease
Any reversal of the recent trend is good news for homebuyers in this western Montana town. Over the past year, home prices in Missoula have spiked more than 27%, with the typical home value now sitting at about $590,000.
Forecasted home price change between late 2022 and late 2024: 8.2% decrease
If you want to roll the dice on improving home prices in Nevada, there are worse places to look than Reno. The city was also among “The 10 Best U.S. Cities for First-Time Homebuyers in 2021.”
Forecasted home price change between late 2022 and late 2024: 8.6% decrease
Sunny days are here again for Fort Lauderdale homebuyers, and it’s not the worst place to settle down. It’s the eighth-best place to retire in Florida, we recently reported.
Forecasted home price change between late 2022 and late 2024: 9% decrease
Homebuyers eyeing Lake Havasu City were due for a break. It currently stands among “The 10 Most Overpriced Housing Markets in the U.S.”
Forecasted home price change between late 2022 and late 2024: 9.3% decrease
Typical home values in Ocala have risen sharply over the past year: 38% according to Zillow. But compared with many places, that’s still not too bad — the typical home value is around $263,000 and apparently likely to decline in the coming years.
Forecasted home price change between late 2022 and late 2024: 9.4% decrease
Like Lake Havasu City, Cape Coral is one of the most overpriced housing markets in the country. It’s little surprise the area might see a course correction in the near future.
Forecasted home price change between late 2022 and late 2024: 9.4% decrease
In June, we reported Spokane homebuyers were paying a premium of more than 56% above average prices. A decline approaching 10% over the next two years is just a dent in those inflated prices, but it certainly doesn’t hurt for the folks who have their hearts set on Eastern Washington.
Forecasted home price change between late 2022 and late 2024: 11.4% decrease
Punta Gorda has become a battleground for prospective homebuyers, with fierce bidding wars and many people walking away disappointed. Perhaps some of those folks will get a better shot over the next two years as prices in this Florida city move in the other direction.
Forecasted home price change between late 2022 and late 2024: 12.8% decrease
This central Florida city is a popular retirement community, and declining prices aren’t likely to change that. We noted last year that more than a quarter of mortgages here are for a buyer’s second home.
Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.
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