With mortgage rates still above 8% and home prices near all-time highs, buyers could see some relief in the months ahead, though it depends on where they are in the country.
The new analysis comes from the property research firm CoreLogic, which noted that prices are expected to appreciate by 2.5% nationally this year, with residential real estate in 20 United States cities potentially seeing price gains of at least double that.
However, not everywhere is expected to see prices rise, as some metropolitan areas could catch a break.
As for where prices are expected to soar even further, CoreLogic predicts in its analysis that five cities in California, four in Washington state, and more along the West Coast all the way up to Alaska.
While history has shown that higher interest rates usually create cheaper pricing in the housing market, things haven’t been following the script. Part of the reason is the scarce inventory, which has, in turn, created a bidding war among buyers, driving prices skyward.
“This continued strength remains remarkable amid the nation’s affordability crunch but speaks to the pent-up demand that is driving home prices higher,” CoreLogic economist Selma Hepp said in a recent analysis.
For the time being, things don’t seem to be changing, but some cities are expected to get relief, according to CoreLogic’s report.
Four of the top five areas facing a 70% chance of price decline are in the state of Florida, with the Palm Bay-Melbourne-Titusville area taking the top stop.
Other metropolitan areas on the list include the West Palm Beach-Boca Raton-Delray Beach area, the Tampa-St. Petersburg-Clearwater area, and the Delta-Daytona Beach-Ormond Beach area.
Taking the number five spot on the list is the Atlanta-Sandy Springs-Roswell area in Georgia.
So, if you’re heading down south, prices may draw you to some areas more than most.