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The real estate portal giant expects a chill on prices to spread through markets across the country over the next year, with pockets of strong price growth in the red-hot Midwest and Northeast
Zillow updated its national home price forecast this week with expectations that home prices would grow on a national level by 1.2 percent.
But that growth isn’t expected everywhere, and prices are expected to fall significantly in some markets across the South and in California.
Zillow has pointed out that markets in the South have been friendliest to buyers in recent weeks, including in markets that previously had strong price growth and in-migration trends like Miami, Tampa, Jacksonville and Austin.
Areas that most favor sellers are largely in the Northeast, where home price growth is expected to remain strong over the coming year. That growth is largely driven by a lack of housing supply.
Notably, San Francisco remains both a strong seller’s market and one of the top 10 metros where prices are expected to fall the most over the next year.
According to Zillow’s most recent forecast, the median home price in the U.S. as of September was $363,946.
Zillow expects most markets in California to have tepid home price growth over the coming year at best.
Meanwhile, in addition to the Northeast, markets across the Midwest are expected to see relatively strong price growth.
The Zillow home price forecast for the Western U.S. is mixed, with some markets expected to see strong price growth while others are expected to be fairly flat or declining, notably across Colorado’s Front Range.
Among the top 250 most populous metro areas, Zillow expects these markets to see the biggest price declines:
- Houma, LA: -7.9%
- Lake Charles, LA: -7.5%
- Lafayette, LA: -5.3%
- New Orleans, LA: -4.8%
- Beaumont, TX: -4.5%
- Shreveport, LA: -4.5%
- Corpus Christi, TX: -3.2%
- San Francisco, CA: -3%
- Santa Rosa, CA: -2.7%
- Monroe, LA: -2.7%
Among the top 250 most populous metro areas, Zillow’s forecasters expected these markets to see the strongest price gains:
- Atlantic City, NJ: 4.7%
- Torrington, CT: 4.7%
- Saginaw, MI: 4.6%
- Rockford, IL: 4.3%
- Kingston, NY: 4.3%
- Knoxville, TN: 4.2%
- Hartford, CT: 4.1%
- New Haven, CT: 4%
- Hilton Head Island, SC: 4%
- Fayetteville, AR: 3.9%
Zillow’s forecast largely tracks the home price changes it expects through the end of this November, with markets across the Midwest and Northeast seeing relatively high home price growth through the end of the year.
Markets across the South, meanwhile, are expected to shed value through November, according to Zillow.