Sunday, May 19, 2024

New study predicts decrease in Tampa Bay area home prices for 2024


Study Finds Home Prices Expected to Rise in 20 U.S. Cities in 2024

Home prices are on the rise in 20 U.S. cities, according to a new study by CoreLogic. Despite the decrease in mortgage rates, homeowners in cities like Redding, California and Fairbanks, Alaska can expect their home prices to increase by more than double the national average. The real estate data and analytics company projects a 2.5% nationwide increase in home prices through November, 2024.

CoreLogic Chief Economist Dr. Selma Hepp attributes the continued strength in the housing market to pent-up demand and a prolonged inventory shortage, especially in markets with a lack of new homes for sale. This has led to notable price gains in 2023 and is expected to continue into 2024.

The top 20 cities where home prices are expected to grow the most in 2024 include Redding, CA; Santa Maria-Santa Barbara, CA; Bremerton-Silverdale, WA; Coeur d’Alene, ID; and Fairbanks, AK. On the other hand, Florida dominates the list of metro areas with the highest likelihood of home price reductions.

Despite the affordability crunch, National Association of Realtors Chief Economist Lawrence Yun believes that only a dramatic rise in supply will dampen price appreciation. As mortgage rates come down, supply remains the biggest obstacle for home buyers looking for a cheaper home.

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