(NEXSTAR) – Ultra-high housing prices may soon take a dip – at least in a handful of U.S. cities. CoreLogic, a financial analytics company that tracks real estate markets around the country, expects home prices to drop in several metro areas over the next year.
While home prices in the Northeast – think places like New York, New Jersey and Connecticut –continue to see substantial growth, the cities with the highest probability of a price drop are mainly in the South.
The tide appears to be turning in Florida especially. Cities like Miami, Pembroke Pines, Tallahassee, Naples and West Palm Beach have seen skyrocketing home prices. Now, some of their Sunshine State neighbors may be overdue for a drop.
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The cities with the highest chance of seeing housing price cuts, according to CoreLogic, are:
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Palm Bay-Melbourne-Titusville, Florida
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Atlanta-Sandy Springs-Roswell, Georgia
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Spokane-Spokane Valley, Washington
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Deltona-Daytona Beach-Ormond Beach, Florida
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Greenville-Anderson-Mauldin, South Carolina
In each city, CoreLogic classifies the level of risk for a price decline as “very high,” meaning real estate analysts say there’s a greater than 70% chance of a price drop by spring 2025.
Nationwide, CoreLogic’s analysts expect the growth in year-over-year home prices to slow a bit into next year. High interest rates are keeping a damper on the real estate market that was so hot just a few years ago.
