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In fact, some cities have already shown signs of weakness.
These markets could see prices continue to dip in 2025.
Its harder to forecast what might happen a few years down the road because so many variables are involved.
But that scenario probably wont play out the same way everywhere.
Here are fivehousing markets that could see home values dropsharply by the end of the decade.
Austin, Texas
Home values in Austin have seen only a slight decline over the past year.
Prices may adjust to reflect the decreased local income levels when migration decreases.
Boises home prices greatly exceeded income growth, rendering the market unsustainable for locals and possibly reducing demand.
But there are signs demand is cooling.
As of September 30, 2024, about two-thirds of home sales were below the list price.
Thats not uncommon, as many sellers price their homes above what they expect to get.
But it does show there are not a ton of buyers competing for homes and driving prices higher.
Orlandos economy, to a lot of extent, relies on tourism flow.
Phoenix, Arizona
Like Boise, Phoenix is still seeing a rise in home values.
But also like Boise, Phoenix could be vulnerable to price decreases as the pandemic boom keeps easing.
These investors might start selling off properties when interest rates rise, oversaturating the market and lowering prices.
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