Study Finds Home Prices Expected to Increase 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 high home prices to pent-up demand and a prolonged inventory shortage, especially in markets where new homes for sale are scarce. The top 20 cities where home prices are expected to grow the most in 2024 include Redding, CA; Santa Maria-Santa Barbara, CA; and Bremerton-Silverdale, WA.
On the other hand, Florida dominates the list of metro areas with the highest likelihood of home price reductions. Palm Bay-Melbourne-Titusville, FL; West Palm Beach-Boca Raton-Delray Beach, FL; and Tampa-St. Petersburg-Clearwater, FL are among the cities where home prices may decline.
Despite the affordability crunch, National Association of Realtors Chief Economist Lawrence Yun believes that only a dramatic rise in supply will dampen price appreciation for home buyers. As mortgage rates come down, the outlook for home buyers remains challenging due to the lack of available inventory.