After surging during the pandemic, real estate markets have floundered over the last two years.
High interest rates hit real estate from several directions: They make new loans far more expensive and have stifled supply through the “lock-in effect.” Would-be sellers feel chained to their homes, given their cheap fixed-interest mortgages — so they aren’t selling.
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That one-two punch has led to the lowest home turnover rate in over 30 years, based on a 2024 analysis by Redfin .
Of the roughly 900 cities tracked by Zillow , 105 of them saw home prices drop over the last year. So which cities look poised to plummet over the next year ?
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Naples, Florida
- Median home price: $577,990 (Zillow)
- Year-over-year (YoY) change: -2.9%
Soaring insurance rates combine with an aging population to make Naples a prime suspect for further housing corrections.