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Zillow Predicts Home Price Drops in St. Louis and 33 Additional Cities in 2024

Article originally posted by Business Insider 

Many potential homebuyers hope homes will get less expensive this year — and their wishes may come true.

Zillow predicts home prices will fall in 34 of the 50 largest US cities from November 2023 to November 2024. The forecast is based on Zillow’s Home Value Index, which Zillow says represents the “typical home value for a region.”

Home prices fall for a variety of reasons. While there’s a low supply on the market due to factors such as interest rates, the main issue in the US is a lack of demand — or willing buyers. This pushes prices down as sellers lower their asking prices to offload their homes.

Relatively high mortgage rates have sidelined people who don’t have enough money to buy — as well as those who just don’t want to spend the higher amounts required to purchase a home these days. For their part, homeowners who may ordinarily list their homes for sale are reluctant to do so — because they’d then have to find new ones, becoming buyers in a tough environment with high prices and higher rates.

Experts are split on housing market forecasts for 2024

Top firms have weighed in with various other predictions for the housing market in 2024.

Zillow forecasts that home prices nationwide will, on average, stay level. Fannie Mae expects home prices to rise by the end of the year.

Fannie Mae also predicts mortgage rates will fall to 6.7% in 2024 and even lower to 6.2% in 2025. The lower rates — which are still relatively high compared with sub-3% rates borrowers got in and around 2020 — may encourage more buyers to make offers. But LendingTree predicts that because home prices will still remain relatively high, sales will be sluggish.

From regular homebuyers to big investors, people track home prices with great interest. Read on for the 34 US cities Zillow said were likely to see home-value declines in 2024, from least to most.

34. Buffalo, New York

Cheektowaga is a suburban area located in an inner-ring suburb of Buffalo, New York. Getty Images
  • Percent drop forecasted: -0.2
  • Zillow’s home value in November 2023: $246,677
  • Zillow’s projected home value for November 2024: $246,184

28. Kansas City, Missouri

Kansas City, Missouri. Mihai_Andritoiu/Shutterstock
  • Percent drop forecasted: -0.4
  • Zillow’s home value in November 2023: $288,301
  • Zillow’s projected home value for November 2024: $287,148

20. Las Vegas

Las Vegas. Sean Pavone/Shutterstock
  • Percent drop forecasted: -1.3
  • Zillow’s home value in November 2023: $405,754
  • Zillow’s projected home value for November 2024: $400,479

18. St. Louis

St. Louis. joe daniel price/Getty Images
  • Percent drop forecasted: -1.4
  • Zillow’s home value in November 2023: $239,310
  • Zillow’s projected home value for November 2024: $235,960

11. Chicago

Bob Krist/Getty Images
  • Percent drop forecasted: -2.2
  • Zillow’s home value in November 2023: $303,291
  • Zillow’s projected home value for November 2024: $296,619

7. Washington, DC

The Washington, DC, cityscape with the Washington Monument and Jefferson Memorial. ESB Professional/Shutterstock
  • Percent drop forecasted: -2.6
  • Zillow’s home value in November 2023: $540,101
  • Zillow’s projected home value for November 2024: $526,058

5. New York City

Alexander Spatari/Getty Images
  • Percent drop forecasted: -2.9
  • Zillow’s home value in November 2023: $624,788
  • Zillow’s projected home value for November 2024: $606,669

3. San Francisco

Alexander Spatari/Getty Images
  • Percent drop forecasted: -4.8
  • Zillow’s home value in November 2023: $1,108,117
  • Zillow’s projected home value for November 2024: $1,054,927

2. New Orleans

French Quarter in New Orleans. Getty Images
  • Percent drop forecasted: -6
  • Zillow’s home value in November 2023: $235,716
  • Zillow’s projected home value for November 2024: $221,573

1. San Jose, California

Walter Bibikow/Getty Images
  • Percent drop forecasted: -6.1
  • Zillow’s home value in November 2023: $1,460,533
  • Zillow’s projected home value for November 2024: $1,317,440

See the full list HERE

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