After a two-year housing boom driven by ultra-low mortgage rates and a mid-pandemic Great Migration, a nationwide housing correction is causing home prices to fall, and experts say the housing market may now be bottoming out. Between January 2023 and January 2024, Zillow economists expect U.S. home values tracked by the Zillow Home Value Index (ZHVI) to rise by just 0.5%, but regional markets could see more variability, Fortune reports.
Zillow expects 238 markets to see positive home price growth, six markets to remain flat, and 156 markets to see home prices decline over the next 12 months. Markets such as Morristown, Tenn., and Rome, Ga., could be home to the largest gains, with forecasted growth of 5.1% and 4.8%, respectively, while experts say cities like Lake Charles, La., and Houma, La., could see the largest declines of -7.2% and -5%, respectively.
Among the nation's 400 largest housing markets tracked by Zillow, 276 markets have seen local home prices fall from their respective 2022 peak. That includes 32 markets where home prices are down over 5% from their 2022 peak.
So far, the biggest seasonally adjusted home price declines have occurred in San Francisco (down 9.2%), Bend, Ore. (down 8.3%), Santa Cruz (down 8.1%), Boise (down 8%), and Austin (down 7.9%). At least that's according to the Zillow Home Value Index.
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