Most forecasts suggest national home values will increase in 2025. However, CoreLogic's recent report highlights five markets at high risk of price declines in the coming year: Provo, UT, Tucson, AZ, Albuquerque, NM, Phoenix, AZ, and West Palm Beach, FL. The analysis indicates a 70% or more likelihood of falling home prices in these areas, driven by factors such as economic conditions and shifts in housing supply and demand. This trend is particularly evident in the Sun Belt region, which experienced rapid post-pandemic growth but is now facing corrections as demand wanes and inventory rises.
"Provo, UT, is at the greatest risk of declining home prices over the next 12 months, according to CoreLogic's latest Market Risk Indicator report."
"Home prices have remained flat since the housing market began seeing slower activity this past summer. Bifurcation across markets has also persisted," says CoreLogic Chief Economist Selma Hepp.
"Northeastern markets drove appreciation growth due to low inventories of homes for sale while Southern markets readjusted to higher inventories and increases in variable mortgage costs, such as taxes and insurance," she adds.
"CoreLogic assesses a 70% or greater probability that home prices will fall in these five markets this year, indicating a significant risk of price declines."
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