House prices will fall in 34 of the 50 largest US cities in the year to November 2024.
The prediction was made by real estate firm ZIllow, which said there’s a lack of supply or willing buyers in these hotspots, which should serve to push prices down.
Higher mortgage rates are another factor, squeezing affordability and leaving some potential buyers to wait and see before making a major financial decision like purchasing a house.
On a positive front for buyers, it’s thought that in this tougher environment fewer will be forced to compete with flippers.
Meanwhile those interested in living in city centres will benefit from what’s been dubbed a ‘multi-family construction boom”.
The steepest falls are expected to take place in San Jose, California, at -6.1%.
This is followed by New Orleans (-6%), San Francisco (-4.8%), Minneapolis (-3%) and New York City (-2.9%).
Despite Zillow predicting price falls in major cities, overall prices across the US should sit pretty flat throughout 2024.
