In a new study conducted by real estate data and analytics company CoreLogic, it has been projected that home prices will experience a nationwide increase of 2.5% through November 2024. However, homeowners in certain cities can expect even higher home prices, with some areas predicted to see prices more than doubling.

Chief Economist Dr. Selma Hepp of CoreLogic noted that despite the affordability crunch and rising mortgage rates, competition and housing prices have remained remarkably high. The study attributed this trend to pent-up demand driving prices higher, especially in markets where a prolonged inventory shortage has been exacerbated by a lack of new homes for sale.

Among the top 20 cities expected to witness the highest growth in home prices in 2024, regions such as Redding, California and Fairbanks, Alaska are forecasted to experience more than double the national average increase.

On the other hand, the study also revealed the markets that are likely to experience a decline in home prices. Four out of the top five metro areas in terms of the likelihood of price reductions are located in Florida, including Palm Bay-Melbourne-Titusville, West Palm Beach-Boca Raton-Delray Beach, Tampa-St. Petersburg-Clearwater, and Deltona-Daytona Beach-Ormond Beach. The fifth area on the list is Atlanta-Sandy Springs-Roswell, located in Georgia.

CoreLogic's forecasts are based on real estate index data, which takes into account factors such as price, time between sales, property type, loan type, and distressed sales. The company's methodology provides insight into the potential future trends in the housing market.

Despite declining mortgage rates, the biggest obstacle for home buyers remains the limited supply of homes. National Association of Realtors Chief Economist Lawrence Yun emphasized that only a significant increase in supply would likely dampen price appreciation.

As the housing market continues to evolve, homeowners and potential buyers in these cities should be prepared for the possibility of higher home prices in the coming years.