The U.S. real estate market has come a long way since the
mortgage and foreclosure crisis. The national average home price
has risen by about 27% since the lows of early 2012, and many
markets have done even better.
However, most experts are projecting the
market to cool off considerably over the next
year or so
. Many markets are projected to see gains of just a couple
percentage points. And, many markets are expected to actually
decline in value over the next year.
, home values are expected to decline in 23 metropolitan areas in
the United States, and if you want to see how your local market
is projected to perform, check out Zillow's research
and download the complete Zillow Home Value Forecast data.
Here are the 5 metropolitan areas where home values are
expected to decline the most over the next year. If you were
thinking about buying a house in any of these areas, you might
get a better deal if you wait.
6. Ocean City, NJ (Projected 1-Year Decline
The Ocean City Metropolitan Area includes all of Cape May County
in New Jersey, and represents the southernmost coastal area of
the state. The area has a fairly expensive market, with the
average home worth about a half million dollars. New Jersey's
coast, or "the shore" was hit very hard by Hurricane Sandy, and
the recovery has made for a sluggish housing market.
5. Houma, LA (Projected 1-Year Decline: 1.8%)
This relatively small metropolitan area is home to about 60,000
residents. Houma's market has rebounded strongly since the
crisis, and may have come too far, too fast. In fact, the average
home value in Houma is actually more than its pre-crisis
4. Charlottesville, VA (Projected 1-Year Decline:
This area in central Virginia has a population of more than
200,000. Charlottesville actually has a fairly robust market,
with far fewer underwater mortgages and delinquent homeowners
than the U.S. average. However, the average listing price has
risen more than 22% in the last 18 months alone, leaving the
market due for a pullback.
3. Cape Cod, MA (Projected 1-Year Decline: 2%)
Cape Cod still has a ways to go to rebound from the housing
crash, but it doesn't look like it's going to happen anytime
soon. The area's home values are still well below the pre-crisis
peaks, but after a strong performance in 2013, home values have
already started to fall in 2014.
flickr/Phillip Capper de Wellington
2. Baton Rouge, LA (Projected 1-Year Decline:
Baton Rouge has a relatively inexpensive market with an
average home value of $138,400. Home values in the area barely
budged during the crash, but increased over the past few years
along with most of the rest of the U.S. In fact, Baton Rouge home
values are 5% higher than the pre-crisis peak.
1. Kingston, NY (Projected 1-Year Decline:
According to Zillow, Kingston has one of the least-healthy
real estate markets in the United States. About 24% of Kingston's
homeowners are underwater on their mortgage, meaning they owe
more than the home is worth. And, 14% of all mortgages on
Kingston homes are currently in some stage of delinquency. A
flood of foreclosures is never good for home prices, and with
such a high delinquency rate, it looks like Kingston is heading
in that direction.
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originally appeared on Fool.com.
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