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Home prices are forecast to fall in these 34 cities

Home prices are forecast to fall in these 34 cities

Alcynna Lloyd

Homes in Seattle.MarkHatfield/Getty Images

There are 34 cities nationwide where Zillow forecasts home prices will fall in 2024.
Some of the places home prices may fall were pandemic home-buying hotspots in Texas and Tennessee.

Many potential homebuyers hope homes will get less expensive this year — and their wishes might 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 is a low supply on the market due to factors like interest rates, the main issue in the US is a lack of demand — or willing buyers. This is starting to push 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 might 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 that 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 to sub-3% rates borrowers got in and around 2020 — may encourage more buyers to make offers. However, LendingTree predicts that because home prices will still remain relatively high, sales will be sluggish.

People from regular homebuyers to big investors track home prices with great interest. Read on for the 34 US cities Zillow said are likely to see home-value declines in 2024, listed in order 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

33. Cincinnati, Ohio

The skyline of Cincinnati, Ohio. Getty Images

Percent drop forecasted: -0.2
Zillow's home value November in 2023: $269,669
Zillow's projected home value for November 2024: $269,130

32. Oklahoma City, Oklahoma

Oklahoma City, Oklahoma. Sean Pavone/Shutterstock

Percent drop forecasted: -0.3
Zillow's home value in November 2023: $225,977
Zillow's projected home value for November 2024: $225,299

31. Nashville, Tennessee

Nashville, nicknamed “Music City,” is recognized as the country music capital of the world. Michael Warren/Getty Images

Percent drop forecasted: -0.3
Zillow's home value in November 2023: $429,071
Zillow's projected home value for November 2024: $427,784

30. Richmond, Virgina

Richmond, Virgina. Sean Pavone/shutterstock

Percent drop forecasted: -0.4
Zillow's home value in November 2023: $349,661
Zillow's projected home value for November 2024: $348,262

29. Cleveland, Ohio

Yuanshuai Si/Getty Images

Percent drop forecasted: -0.4
Zillow's home value in November 2023: $214,136
Zillow's projected home value for November 2024: $213,279

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

27. Riverside, California

Riverside, California Jon Bilous/Shutterstock

Percent drop forecasted: -0.4
Zillow's home value in November 2023: $555,039
Zillow's projected home value for November 2024: $552,819

26. Philadelphia, Pennsylvania

Philadelphia, Pennsylvania joe daniel price/Getty Images

Percent drop forecasted: -0.7
Zillow's home value in November 2023: $344,731
Zillow's projected home value for November 2024: $342,318

25. Milwaukee, Wisconsin

Murat Taner/Getty Images

Percent drop forecasted: -0.8
Zillow's home value in November 2023: $324,778
Zillow's projected home value for November 2024: $322,180

24. Dallas, Texas

Dallas, Texas. f11photo/Shutterstock

Percent drop forecasted: -0.8
Zillow's home value in November 2023: $366,326
Zillow's projected home value for November 2024: $363,395

23. Virginia Beach, Virginia

Aerial view of the Virginia Beach oceanfront. Kyle J Little/Shutterstock

Percent drop forecasted: -1.1
Zillow's home value in November 2023: $334,034
Zillow's projected home value for November 2024: $330,360

22. Detroit, Michigan

Detroit, Michigan skyline. Sean Pavone/Shutterstock

Percent drop forecasted: -1.1
Zillow's home value in November 2023: $238,284
Zillow's projected home value for November 2024: $235,663

21. Louisville, Kentucky

Home to the annual horse racing tournament the Kentucky Derby, Louisville is located along the Ohio River and is one of the Midwest’s largest cities. Getty Images