After a pandemic-era boom, the housing market is finally showing signs of slowing down. Demand for housing began to decline as a result of rising home prices and higher mortgage rates crowding out many potential buyers from the market.
According to Moody’s Analytics latest home ownership: luck, house prices will rise by 0% next year. This is a dramatic drop from the 19.7% price increase experienced by the housing market over the past 12 months.
But analysts Expect price changes Varies greatly in different parts of the United States. Moody’s analyzed 414 of the nation’s largest housing markets and found that 183 markets will see rising home prices next year, while another 231 will see home prices fall.
Biggest House YoY price increase According to Moody’s analysts, it will be held in five cities in 2023:
- Albany, Georgia (4.12%)
- New Bern, North Carolina (4.12%)
- Augusta, Georgia (3.84%)
- Hartford, Connecticut (3.73%)
- Casper, Wyoming (3.29%)
Meanwhile, the firm’s analysts expect home prices to be the lowest in those areas.
- The Village, Florida (6.96%)
- Punta Gorda, FL (6%)
- Reno (5.57%)
- Honolulu (5.56%)
- Spokane, Washington (5.52%)
Moody’s 2024 forecast sees the situation slightly different, with these cities expected to report the biggest increase in house prices.
- Albany, Georgia (5.5%)
- Casper, Wyoming (4.52%)
- Columbus, Georgia (4.09%)
- Rocky Mount, North Carolina (3.97%)
- San Jose, California (3.83%)
Albany continues to hold the top spot on the list and Casper is experiencing even higher home price growth, but Columbus, Rocky Mount and San Jose have replaced New Bern, Augusta and Hartford in the 2024 rankings. .
In general, Moody’s analysts expect more cities to see home price increases over the two years than in 2023, with 236 cities seeing year-over-year increases, but with house prices falling. There are only 178 residential markets in the region that are expected to do so.
The Village and Punta Gorda once again topped the list of the five areas with the steepest declines in house prices in 2024, although some cities are not included in the 2023 list.
- The Village, Florida (6.33%)
- Punta Gorda (5.71%)
- Cape Coral, Florida (4.58%)
- Lake Havasu, Arizona (4.26%)
- Spokane, Washington (4.11%)
A slowdown in the housing market is necessary for the Fed’s plan to curb inflation to work, but there is also the risk that a sharp slowdown in the market could lead to a crash.
So far, experts have residential accident As in 2008, market conditions are much more stable and safer than before the financial crisis, he said.