Open up any real estate app, and you’ll quickly see that home prices have hit staggering highs. For many aspiring homeowners, the American dream feels increasingly out of reach in this ballooning market. But there’s a silver lining on the horizon. Analysts are pointing to a potential shift in 2024, with forecasts indicating that home prices in 13 specific cities are expected to drop. This change could open up new opportunities for first-time buyers and those looking for more affordable housing options.
1. Boulder, CO
According to figures from the National Association of Realtors (NAR), median home prices in Boulder have already fallen by 2% as of February 2023 (from the prior year). In fact, a mass exodus of homeowners from Colorado has sparked concerns that the housing market in the state (including Boulder) could “collapse.”
If you are hunting for deals, Boulder is one of several Colorado cities to watch.
2. San Francisco, CA
As of September 2023, the average home value in San Francisco had fallen by more than 11% compared with the previous year. With San Francisco’s stock falling, you might purchase property at a (relative) discount and hope the city returns to its Full House heyday.
However, remember that people are leaving San Francisco for good reason. Even with a decline in prices, the City by the Bay remains among the most expensive you can find in America, and that is just the beginning of former residents’ complaints.
3. Boise, ID
Idaho has seen a greater contraction in housing prices in 2023 than any other state. With natural beauty and spades, why not invest in a high-quality coat and make Boise your home in 2024? If prices continue falling at a rate near their current pace, you will be able to get a steal.
4. Seattle, WA
Home prices in certain areas of Seattle have dropped by as much as 17% in 2023. The nationwide rise in interest rates, as well as concerns about Seattle’s safety and jobs market, are undoubtedly contributing to the decline.
While Seattle has long been a costlier-than-average city, home values are relative. If you’ve always wanted to live in Seattle and can stomach the less-than-favorable changes that have taken place in recent years, 2024 might be the year to realize your Pacific Northwestern Dream.
5. Las Vegas, Nevada
Looking for a home within walking distance of world-renowned blackjack tables and sportsbooks? Do you have impeccable financial discipline and a wish to live in one of America’s most iconic cities?
Check out Las Vegas, which has seen a decline in median home sale prices of 3.6% between August 2022 and August 2023. While homes are still more expensive in Vegas than the national average, there are worse cities for homebuyers to take a gamble on their dream home.
6. New Orleans, LA
The Crescent City remains one of the most unique, fun-loving, waistline-expanding, hangover-creating cities in the United States. Yet, even with all its charm, New Orleans‘ chronic issues (potholed streets, rampant crime, unreliable police presence) are as bad as they’ve ever been.
Yet, if you can look past the city’s problems, home prices continue to decline at an accelerating pace. If you sense the market bottoming out in 2024, jump on a home like a pair of beads on the ground at Mardi Gras.
7. Austin, TX
A city that may have seen greater post-pandemic price swelling than any other, Austin’s housing market is finally showing signs of coming down to earth. Though the cost of a home in Austin is still exorbitant, you might find a palatable investment in 2024. If a 2% decline in median home prices continues, you might be able to buy a home without selling your kidneys to afford the down payment.
8. Phoenix, AZ
Transplants from California made Phoenix one of the fastest-gaining home markets post-2020. However, the boiling-hot market seems to have cooled a bit. A 1.2% drop in median home values is noteworthy and could spell a good deal for those purchasing their desert dream house in 2024.
Word to the wise before you do buy in Phoenix. With the tenuous state of world affairs, budget for a generator in case the electric grid goes down in the middle of the Arizona summer.
9. San Antonio, TX
Those charmed by San Antonio’s riverwalk, history, and cuisine (Tex-Mex, anyone?) ask: Why shouldn’t I make San Antonio into San An-home-io?
2024 might be the time to answer that rhetorical question. San Antonio is one of several major Southern cities that have seen home value drops in 2023.
10. Oakland, CA
If you have any doubt that the California exodus is real, look at home prices. These figures reflect supply and demand. Oakland, a city once marked by growth and gentrification, saw a decline in home prices of more than 12% in 2023.
11. Myrtle Beach, South Carolina
This Southern vacation town on South Carolina’s Atlantic coast has no shortage of entertainment, golf courses, and modern amenities. If you can brave the hustle and bustle of Myrtle Beach, a decline in median home values of more than 7% should be music to your ears.
Let the prices continue to fall, and find yourself a steal of a deal in 2024.
12. San Diego, CA
San Diego is one of the most desirable cities in the United States. San Diego also happens to be one of the cities Moody’s has tabbed as likely to see considerable price decreases in 2024. To quote Ron Burgundy, “Discovered by the Germans in 1904, they named it San Diego, which is, of course, German for ‘forever home at a rock-bottom price.'”
13. Sarasota, FL
You’re going to end up in Florida eventually, so why not move in your 40s rather than your 80s? Homes near Sarasota’s idyllic beaches and Gulf views have dropped in cost by nearly 5% in 2023. Make 2024 your year to become a Sarasotan sooner rather than later.
