As elevated housing costs continue to chip away at homebuyer demand nationwide, a few oversupplied metros are at risk of major price reductions in the year ahead, Insider reports. Formerly red-hot housing markets such as Seattle, Phoenix, San Francisco, and Austin, Texas, have seen substantial increases in inventory, and as a result, each metro is expected to see a double-digit price correction by late 2024.
Housing affordability remains at historic lows due to higher interest rates, but nationwide, experts are anticipating just a 6.1% decline in home prices for 2023.
By late 2024, home prices will decline by 19% in Austin, 12% in Seattle, 16% in Phoenix and 15% in San Francisco compared to late-2022 levels, the bank said in a note on Thursday.
While the housing market overall remains tight, those four cities have seen big increases in inventory, and supply is overwhelming demand, analysts said.
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