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People looking to buy a home may be frustrated by two recent trends, leaving them unsure of the best time to pull the trigger.
Just as the price of homes in many areas has started to cool off, mortgage rates have spiked — the rate on a 30-year mortgage has doubled since the beginning of the year, as we recently reported. So do you buy now or wait to see if interest rates come down before prices go back up? Right about now, a crystal ball would help.
While nobody can predict the future with perfect accuracy, a new analysis of 414 housing markets that Moody’s Analytics conducted for Fortune highlights the biggest price declines expected between the fourth quarter of 2022 and the fourth quarter of 2024.
Here’s a look at the cities where home prices are expected to decline the most over the next two years.
10. Palm Bay, Florida
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Forecasted home price change between late 2022 and late 2024: 7.6% decrease
Palm Bay is the first of several Sunshine State cities poised to become more appealing to homebuyers. That’s great news since it’s already among “11 of the Cheapest Places to Live in Florida,” with a cost of living 6.3% below the national average, according to data from Salary.com.
9. Missoula, Montana
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Forecasted home price change between late 2022 and late 2024: 7.7% decrease
Any reversal of the recent trend is good news for homebuyers in this western Montana town. Over the past year, home prices in Missoula have spiked more than 27%, with the typical home value now sitting at about $590,000.
8. Reno, Nevada
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Forecasted home price change between late 2022 and late 2024: 8.2% decrease
If you want to roll the dice on improving home prices in Nevada, there are worse places to look than Reno. The city was also among “The 10 Best U.S. Cities for First-Time Homebuyers in 2021.”
7. Fort Lauderdale, Florida
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Forecasted home price change between late 2022 and late 2024: 8.6% decrease
Sunny days are here again for Fort Lauderdale homebuyers, and it’s not the worst place to settle down. It’s the eighth-best place to retire in Florida, we recently reported.
6. Lake Havasu City, Arizona
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Forecasted home price change between late 2022 and late 2024: 9% decrease
Homebuyers eyeing Lake Havasu City were due for a break. It currently stands among “The 10 Most Overpriced Housing Markets in the U.S.”