As a housing correction slows the pace of home price growth across the U.S., expensive parts of the country are bracing for significant declines in the year ahead, says Insider. Lawrence Yun, chief economist at the National Association of Realtors (NAR), forecasts 0% home-price growth in 2023, and in states like California, home prices could fall between 5% and 10% as the housing market heads toward a recession.
While half of the country could see falling prices in the near future, a number of popular markets will continue to confront historically high home prices, especially as buyers compete for a limited supply of homes.
"The Midwest will hold on better because it's affordable," he said. "Southern states will hold on better because of job growth and in-migration."
He reassured, however, that the possibility of a 30% drop in home prices — which is roughly what happened during the housing-market downturn of 2006 to 2012 — is slim. There are just too few homes for sale, Yun said.
Advertisement
Related Stories
Housing Markets
10 Biggest Publicly Traded Home Builders Undeterred by High Mortgage Rates
Together, the 10 biggest builders recorded 77,255 new homes in Q1 2024, an increase of more than 18% from Q1 2023
Housing Markets
States Seek Long-Term Solutions to Reform Property Taxes
Rising home prices typically lead to higher property tax assessments, which has been the case in many Mountain West states, prompting lawmakers to grapple with property tax relief
Housing Markets
Metros Where Housing Prices Have Doubled in Less Than 10 Years
Historical data show it's taken less than 10 years for home prices to double in 68 of the country’s 100 largest cities