With the housing market starting to cool after a wild upward climb, experts are still predicting there’s still some room left for them to rise. But in certain areas, sharp declines are expected—and the number of areas poised for a drop has grown, Fortune reported.
While CoreLogic predicts U.S. home prices are poised to rise another 5.9% between April 2022 and April 2023, its analysts studied 392 regional housing markets and found 45 markets had a greater than 50% chance of seeing local home prices decline over the next 12 months, according to the article.
A similar analysis from just last month found only 26 markets in that category—marking a 73% increase.
- 159 of the markets analyzed were in the “very low” (0-20% chance of a drop) risk group
- 152 housing markets were in the “low” (20-40% chance) group
- 36 markets were in the “medium” (40-50% chance) group
- 41 markets were in the “high” (50-70% chance) group.
According to the article, CoreLogic found only four markets as having a “very high” (over 70%) likelihood of a price drop:
- Bellingham, Wash.
- Bend, Ore.
- Bremerton, Wash.
- Lake Havasu City, Ariz.