Real Estate Outlook for 2024: Identifying Cities with Soaring and Plummeting Property Values

Lisa Mailhot  |  January 19, 2024

Buyers

Real Estate Outlook for 2024: Identifying Cities with Soaring and Plummeting Property Values

 

The real estate market in 2023 presented formidable challenges for home buyers, characterized by soaring mortgage rates and record-high home prices. However, 2024 promises a mixed bag of trends, with certain U.S. cities anticipating notable price increases, while others may face declines.

Nationally, a modest appreciation of 2.5% in home prices is expected. Yet, in stark contrast, 20 cities are forecasted to experience growth at least double this rate. This projection comes amidst a backdrop where only 16% of homes were deemed affordable for the typical buyer last year, a significant drop from around 40% before 2022. The rise in mortgage rates, in response to the Federal Reserve's policies to counter inflation, has been a key factor in this shift.

Interestingly, despite higher financing costs traditionally dampening home prices, 2023 saw a surge due to fierce competition over limited housing inventory. This trend underlines the strong, ongoing demand driving the real estate market.

Where home prices could jump in 2024

From Alaska to Arizona, various cities are set to witness considerable price jumps. Remarkably, five Californian and four Washington state cities are in this group. Topping this list is Redding, California, with an anticipated 7.3% increase in home values. Redding, a Northern Californian city with around 90,000 residents, currently has a median home price of approximately $375,000.

 

Where prices could fall

Conversely, certain cities, especially those that experienced significant price hikes during the pandemic, are now at risk of a downturn. For instance, in the Tampa-St. Petersburg area of Florida, housing costs have escalated by 72% since early 2020. Notably, four of the five cities most likely to see sharp price declines are in Florida, with one in Georgia.

Bottomline

As we navigate this complex and evolving real estate landscape, it's crucial for buyers and sellers to stay informed and adapt their strategies accordingly. While some areas offer promising opportunities for growth, others require caution due to potential price corrections.

If you're considering a move to Orange County or seeking guidance in this dynamic market, let's connect. Together, we can explore your options and find the best path forward in 2024's real estate journey.

 

 

Reference: Picchi, Aimee. "Here are the 20 cities where home prices could see the biggest gains in 2024 — and where prices could fall." Moneywatch, CBS News, 16 Jan. 2024.


RECENT BLOG POSTS

Navigating the Rising Tide: Protecting Your Home in Insurance Deserts

Explore the challenges and solutions facing homeowners in areas known as "insurance deserts" where escalating premiums and climate risks make obtaining affordable cove… Read more

Navigating Orange County’s Housing Market Amid Nationwide Trends

Housing starts in the US hit a 4-month low, with multifamily construction declining but single-family homes rebounding in storm-affected regions. Discover what this me… Read more

Embracing the Golden Age of Guest Bedrooms: A Trend Transforming American Homes

Explore the surprising trend of shrinking household sizes in the U.S. and how it has ushered in a golden age for guest bedrooms. With an all-time high in spare bedroom… Read more

AI Tools Revolutionizing Real Estate: How Tech Simplifies Industrial Real Estate Operations

Discover cutting-edge AI tools transforming industrial real estate by streamlining logistics, site selection, property management, and marketing. Let’s make your move … Read more

Southern California's Real Estate Landscape: Key Developments and Industry Movers

Stay updated with the latest shifts in the Southern California real estate scene for December 2024. From new divisions and leadership changes to significant industry a… Read more

Understanding Tax-Assessed Value vs. Market Value

Discover the differences between tax-assessed value and market value in real estate, and how these valuations affect your property transactions. Learn to navigate thes… Read more

A Model for Affordable Housing and Community Transformation of Hope Village

Discover Hope Village, a groundbreaking faith-based affordable housing project in Walnut Creek, provides safe, stable homes for the homeless. Learn how this initiative… Read more

When the Smoke Clears: Real Estate Resilience Amid Wildfires

Dive into the effects of the Malibu wildfires on California's real estate landscape. From safeguarding properties to tackling insurance obstacles, this blog offers ess… Read more

The Clash Between Progress and Community of Data Centers and Neighborhoods

Explore the growing tension between data center expansion and community well-being. Learn how these developments impact local neighborhoods, what they mean for residen… Read more

We are excited to assist you in finding your perfect home

Let's find a time that suits you best to chat about your goals, show you how we work, and figure out how we can help you the most