These 13 Housing Markets Could See Decelerating Prices
A CoreLogic market risk calculation for 385 metropolitan areas revealed just 13 markets with a high likelihood of home price deceleration in the next 12 months, Fortune reports. A regional slowdown doesn’t necessarily mean a drop in buyer demand or a sudden boost in inventory, but according to the report, it could instead be a sign of “overheating.”
Markets like Niles, Michigan, Lake Havasu City, Arizona, and Chico, California are considered overvalued when comparing regional price growth to the rate of local income growth, leaving buyers with few affordable housing options.
On Wednesday, CoreLogic provided Fortune the market risk calculation for 385 metropolitan statistical areas. Among those markets, CoreLogic rates 13 markets as having a "high" likelihood (between a 50% to 75% probability) of declining home prices in the coming 12 months. Those 13 markets include Niles, Mich.; Lake Havasu City, Ariz.; Chico, Calif.; Lewiston, Maine; Modesto, Calif.; Muskegon, Mich.; Pittsfield, Mass.; Prescott, Ariz.; Worcester, Mass.; Bend, Ore.; Kalamazoo, Mich.; Merced, Calif.; and Springfield, Mass.