Home News These top 5 housing markets are expected to crash first — do you live in one of these fast-growing cities?

These top 5 housing markets are expected to crash first — do you live in one of these fast-growing cities?

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These top five housing markets are expected to crash first. Do you live in one of these fast-growing cities?

Home prices have skyrocketed over the past decade. This is due to a severe shortage of available housing, years of ultra-low mortgage rates, and a surge in demand for housing fueled by the post-Great Recession economic recovery and lockdowns caused by the COVID-19 pandemic.

House prices are up about 15% over the long term, according to mortgage giant Fannie Mae.

But that the bubble may burst The United States could plunge into recession in the near future. And certain particularly hot markets will be impacted more than others in the country, according to new findings from Consumer Affairs.

Except for those markets, it might not be what you think.

If you call any of these five cities home, tumbling home values next year.

Do not miss it

Austin, Texas

A Consumer Affairs poll found that among the nation’s 50 most populous cities, 33% of survey respondents believe Austin will be the first market to crash in America.

As of 2021, the city has a population of 964,177 with a median age of about 34. Pre-pandemic estimated household income was $46,217 and per capita income was estimated at $54,414.

Austin’s median July home price was $650,000, or $364 per square foot, up 18.2% year over year. However, homes are selling for almost double that amount, with a median home sale price of $1.3 million, with homes taking up 41 days after the median market price.

A 15% drop in home prices would drop the average price to $552,500, down $97,500.

Atlanta

Atlanta was named the second most likely city to see home prices fall. 26% of her respondents expect the price to drop soon.

The Georgia State Capitol has 496,461 residents as of 2021, with a median resident age of 33. The estimated pre-pandemic household income was $66,657, and the median household income in 2020 was $64,179.

As of July, the median home price in Atlanta was $435,000, or $267 per square foot, up 8.7% year over year. The median home sale price was $395,000, with homes sold 40 days after the median market price.

A 15% drop in home prices would bring the average price down to $369,750, down $65,250.

bakersfield, california

Nearly a quarter of survey respondents are preparing for a fall in Bakersfield home prices.

Known as “Nashville West,” this country music mecca has 407,615 residents as of 2021, with a median age of 31. Her median household income was $65,687 as of 2020, but from 2019 her 2020 per capita income has plummeted to her $27,309.

As of July, the median home price in Bakersfield was $380,000, or $221 per square foot, up 20.6% year over year. The median home sale price was $360,000, with homes sold 46 days after the median market price.

A 15% drop in home prices would bring the average price down to $323,000, down $57,000.

Los Angeles

In fourth place, 23% of respondents believe Los Angeles is the city where house prices are most likely to fall.

As of 2021, the City of Angels has a population of 3,849,297, with a median age of about 36. As of 2020, median household income was $65,290 and per capita income was $37,143.

As of July, the median home price in Los Angeles was $1 million, or $654 per square foot, up 4.4% year over year. The median home sale price was $948,000, with homes sold 49 days after the median market price.

A 15% drop in home prices would drop the median listing price to $850,000, down $150,000.

Albuquerque, New Mexico

Ranked fourth alongside Los Angeles, 23% of survey respondents expect Albuquerque home prices to adjust.

As of 2019, the city has a population of 560,513 with a median age of 37. Pre-pandemic estimated household income was $55,567, with an estimated per capita income of $32,216.

As of July, the median home price in Albuquerque was $332,500, or $188 per square foot, up 14.7% year over year. The median home sale price was $358,892, with the home being sold 51 days after the median market price.

A 15% drop in house prices would lower the median list price to $282,625, down $49,875.

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This article is for informational purposes only and should not be construed as advice. It is provided without warranty of any kind.

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