4 Places Where Home Prices Could Plummet Up to 19%

Housing prices are falling in many U.S. markets, but four cities are expected to have an especially rough time between now and the end of 2024.

Markets Insider cites a recent Goldman Sachs report suggesting that a flood of housing inventory has come online recently in a few of the 25 largest U.S. markets, and that the increase of homes for sale in these places is enough to overwhelm demand.

The dip in the fortunes of these markets is a result of “local challenges, particularly very poor levels of affordability, pandemic-related distortions, and (in certain markets) a high concentration of employment in the technology industry,” according to Goldman Sachs.

Following are the four of the 25 largest metropolitan areas where home sweet home could soon turn bitterly sour for homeowners.

4. Seattle metro area

Home price change expected in this metro area by late 2024: 12% decline

The near future for housing is looking bleak in Washington state. We recently reported that three metros there were among the “5 Housing Markets at ‘Very High’ Risk of Falling.”

Now, Seattle joins the ranks of cities where homeowners are likely to see a percentage of their property value evaporate in coming months.

San Francisco metro area

Home price change expected in this metro area by late 2024: 15% decline

These days, it seems like San Francisco has lost a bit of its shine. In January, the city topped the list of “8 Places Seeing Their Worst Home Price Declines in Nearly a Decade.” If Goldman Sachs is correct, the pain won’t end anytime soon.

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2. Phoenix metro area

Home price change expected in this metro area by late 2024: 16% decline

Phoenix was among the “15 Cities With the Largest Drop in Home Sales in 2022.” And things aren’t looking so great for this year either.

1. Austin, Texas, metro area

Home price change expected in this metro area by late 2024: 19% decline

A little over a year ago, Austin was among the hottest housing markets in the country. But a lot has changed since then.

As we reported recently, the Texas state capital is now one of the “10 Housing Markets Where Bidding Wars Are Disappearing.”