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When considering real estate investments, it’s crucial to understand market trends. This article identifies ten housing markets expected to see significant declines in value over the next five years, aiding in more informed decision-making.
San Francisco, once a thriving tech hub, is experiencing a downturn. Major retailers like Macy’s and Nordstrom are leaving, and property values are falling. A two-bedroom condo purchased for $1.25 million in 2019 sold for $675,000 in April 2024. The median home price has already dropped by 8.2% compared to last year, a trend expected to continue as remote work leads many to leave due to high living costs.
Austin’s real estate market shows signs of overvaluation. Home prices are 28% higher than the national average, with nearly 40% of homes experiencing price drops. Sales have decreased by 11% year-over-year, indicating a market correction is likely. The city’s rapid growth due to the tech industry has driven prices up by 32% in two years, making a decline almost inevitable.
In New York City, 31% of homebuyers begin their searches outside the city limits. Homes in the city remain on the market for an average of 65 days, and sales have dropped by 4.6% year-over-year. Considering nearby metropolitan areas might be a better investment strategy.
Denver’s real estate market is cooling, with 45.2% of homes experiencing price drops. Although homes sell quickly, declining sale prices suggest a market downturn.
Miami’s real estate market is showing signs of decline. Homes are on the market for an average of 80 days, with an 8.1% decrease in sales year-over-year. The city’s cost of living is 18% higher than the national average, indicating a potential market decline.
San Antonio is experiencing a 10.8% decrease in home sales year-over-year. The average days on the market have increased to 47, suggesting that selling a home for a gain in the future might be challenging.
Seattle’s cost of living is 45% higher than the national average, and 30.1% of homes have seen price drops. This suggests a declining housing market over the next five years.
Phoenix has seen a 9% drop in home sales year-over-year, with the average days on the market increasing to 46. The percentage of homes with price drops has risen significantly, indicating a potential market downturn.
In Los Angeles, nearly 21% of homebuyers are looking to move elsewhere. The cost of living is 50% higher than the national average, and home prices increased by 10.9% compared to 2023. These factors suggest the Los Angeles housing market may face a decline.
Sarasota’s housing market shows signs of turbulence. Homebuyers are leaving the area, with 36% looking elsewhere. The days on the market have increased by 36 year-over-year to 71, indicating potential market instability.
Avoiding these ten markets may help preserve your real estate investment, steering you toward areas with greater potential for appreciation.
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By Proptechbuzz
By Ravi Kumar
