These 10 housing markets are overdue for a price drop, analysts say
(NEXSTAR) – Between high prices and high interest rates, there hasn’t been much good news for would-be homebuyers lately. But new data from CoreLogic, a financial analytics company that tracks real estate markets around the country, has a glimmer of hope for those looking to buy in 10 U.S. cities.
Real estate has been red-hot the past year. CoreLogic found in its most recent analysis that prices jumped more than 18% nationwide from June 2021 to June 2022. And some states saw prices jump by even more — Tennessee saw an increase of 25.8%, and Florida saw whopping 31.8% year-over-year price growth.
CoreLogic expects a much cooler year ahead, forecasting prices around the country to go up about 4% by June of next year.
“Though annual appreciation was still strong, it slowed from the previous month for the second consecutive month, reflecting reduced buyer demand in part due to higher mortgage rates and worries about a slowing economy,” the report reads.
In some areas, the analysts are actually expecting prices to fall. CoreLogic told Nexstar it expects the below 10 metro areas to see price drops over the next year. (The list is ranked with the highest risk of price drops at the top — not necessarily the largest drops.)
- Bend-Redmond, Oregon
- Longview, Washington
- Bremerton-Silverdale, Washington
- Bellingham, Washington
- Boise, Idaho
- Mount Vernon-Anacortes, Washington
- Grants Pass, Oregon
- Coeur d’Alene, Idaho
- Crestview-Fort Walton Beach-Destin, Florida
- Olympia-Tumwater, Washington
Northwestern states dominate the list, with several areas in Oregon, Washington and Idaho ranking in the top 10.
The only non-Northwestern locale included in the top 10 is the Florida panhandle metro area including Crestview, Fort Walton and Destin. The median home price in the city of Destin is $655,000, according to Zillow data. But if CoreLogic’s forecast pans out, a beachside home there could soon be just a bit cheaper.