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US ‘Zoom towns’ will get hit with falling home prices: expert

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‘Zoomtown’, a city that boomed during the pandemic, is poised for the steepest drop in residential real estate market lose momentumindustry experts said.

Topping the list is Boise, Idaho, which has seen a “complete turnaround” in housing this year, according to Rick Palacios, research director at John Burns Real Estate Consulting.

“It’s a single market where we really expect prices to fall in 2022,” Palacios told MoneyWise.

Palacios pointed to four other cities that have become hotspots during the pandemic as the cost of living and quality of life decline as mortgage rates rise and businesses crack down on remote work.

They are in Austin, Texas. Nashville; Phoenix; and Sacramento, CA.

“These are some of the markets where we expect the steepest price declines in 2023,” said Palacios, whose firm tracks data on developers, realtors and investors. money wise.

Skyline of Phoenix, Arizona.
Getty Images

According to the report, Boise has become one of the most affordable cities to buy a home during the pandemic, with prices soaring 72% above what middle-income families can afford.

Nearly 70% of Boise sellers were forced to cut prices in July, according to a report citing data from real estate broker Redfin..

Phoenix home prices have surged 25% over the past year, while Austin and Nashville prices have risen 75% and 56%, respectively, since February 2020, according to the Zillow Value Index.

Skyline of Nashville, Tennessee.
Skyline of Nashville, Tennessee.
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But real estate experts say the trend is trending downward this year.

In the first quarter of this year, investor homebuyings fell 17% in Nashville and 21% in Sacramento, according to the report.

Attracting tech workers from Silicon Valley, Seattle and Los Angeles, the number of homes for sale in Austin increased 27% in June compared to last year.

downtown sacramento
Sacramento, California skyline.
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The percentage of homes that have lowered their selling prices nationwide jumped 19.4% in August. To monthly report Last week on Realtor.com the post reportedThat number is up from 11% in the same month a year ago.

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