Home Prices Expected to Drop in 2023-2024 for Many Major US Cities
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Zillow forecasts home prices will fall in 34 of the 50 largest US cities from 2023 to 2024, with the biggest drops in San Jose (-6.1%), New Orleans (-6%), and San Francisco (-4.8%).
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Prices are expected to fall due to lack of demand from buyers unwilling or unable to afford high prices and mortgage rates.
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Sellers are reluctant to list homes in the tough market, further reducing inventory.
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Experts disagree on whether prices will rebound in 2024 due to uncertainty around mortgage rates and other factors.
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The cities forecast to see the largest home price declines are mostly pandemic hotspots located in California and Texas.