You are using an older browser version. Please use a supported version for the best MSN experience.

These once-hot housing markets are cooling off

GOBankingRates Logo By Cameron Huddleston of GOBankingRates | Slide 1 of 51: The housing market is expected to cool off in 2020, according to real estate experts. If you’re a buyer, don’t get too excited yet — that doesn’t mean home prices will start falling nationwide.
“Real estate is on firm ground with little chance of price declines,” said Lawrence Yun, chief economist at the National Association of Realtors, in a press release.
Instead, what the cool-off means is that home prices won’t continue to rise as quickly as before. In 2019, the median sale price for homes in the U.S. rose by 5%. For 2020, home sale prices are forecasted to rise by just 3.6%, according to economists surveyed by the National Association of Realtors. However, some housing markets across the U.S. have already seen a significant slowdown in home price growth, a new GOBankingRates study found. That could be good news for buyers in those areas.
GOBankingRates analyzed the 500 largest housing markets in the U.S. to determine which ones have cooled off the most over the past year. Using data from real estate marketplace Zillow, the study identified housing markets that saw higher growth in median home list prices from 2017 to 2018 compared to the national average. The 136 markets with faster-than-average growth were then narrowed down to the ones that experienced below-average growth between 2018 and 2019. Ranked from the smallest slowdown to the biggest, the final list from GOBankingRates includes the 50 housing markets with the largest drop in year-over-year growth, indicating once-hot markets that have cooled off considerably.
The majority of these housing markets are located in the South and the West — in fact, 10 are in California alone. Unfortunately for buyers, however, you won’t find many of the hottest California real estate markets on this list. If you’re looking to sell or buy a home, proceed with caution: These housing markets could be headed for trouble.
Last updated: Jan. 21, 2020

These once-hot housing markets are cooling off

The housing market is expected to cool off in 2020, according to real estate experts. If you’re a buyer, don’t get too excited yet — that doesn’t mean home prices will start falling nationwide.

“Real estate is on firm ground with little chance of price declines,” said Lawrence Yun, chief economist at the National Association of Realtors, in a press release.

Instead, what the cool-off means is that home prices won’t continue to rise as quickly as before. In 2019, the median sale price for homes in the U.S. rose by 5%. For 2020, home sale prices are forecasted to rise by just 3.6%, according to economists surveyed by the National Association of Realtors. However, some housing markets across the U.S. have already seen a significant slowdown in home price growth, a new GOBankingRates study found. That could be good news for buyers in those areas.

GOBankingRates analyzed the 500 largest housing markets in the U.S. to determine which ones have cooled off the most over the past year. Using data from real estate marketplace Zillow, the study identified housing markets that saw higher growth in median home list prices from 2017 to 2018 compared to the national average. The 136 markets with faster-than-average growth were then narrowed down to the ones that experienced below-average growth between 2018 and 2019. Ranked from the smallest slowdown to the biggest, the final list from GOBankingRates includes the 50 housing markets with the largest drop in year-over-year growth, indicating once-hot markets that have cooled off considerably.

The majority of these housing markets are located in the South and the West — in fact, 10 are in California alone. Unfortunately for buyers, however, you won’t find many of the hottest California real estate markets on this list. If you’re looking to sell or buy a home, proceed with caution: These housing markets could be headed for trouble.

Last updated: Jan. 21, 2020

© Vito Palmisano / Getty Images/iStockphoto
Loading...

XD Load Error

More from GOBankingRates

GOBankingRates
GOBankingRates
AdChoices
image beaconimage beaconimage beacon