Housing market: 10 cities where home prices are expected to drop in 2023 according to experts

Prospective buyers may have found the home of their dreams beyond their reach in recent years, but now that the housing market has cooled down, they may have greater chances of finally being able to afford it.

Prices have been dropping, falling year-on-year for the first time in 11 years in February, while mortgage rates ended over 30 basis points lower in March than when they started.

Although economic experts do not have a consensus on how low prices will go, those who want to buy homes would do well to check out the cities where housing costs could continue to slide.

According to the personal finance site GoBankingRates, these are 10 cities where you may consider for house-hunting.

10 cities where home prices are expected to drop in 2023

There was a lot of buyer interest in the west during the pandemic, which is why the largest projected price drops are expected in this area. California in particular is seeing lower home values.

1. San Jose, California

The heart of Silicon Valley has had real estate that has been unattainable for many, but the price of homes there could drop by as much as 3.6% by next year. The average home value of $1,412,787 in February may go down to $1,361,926 by February 2024.

2. Urban Honolulu, Hawaii

The state with one of the most expensive housing rates may see home values decreasing 3.2% over the same period. Home values which stood at $867,798 may go down to $840,028.

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3. Baton Rouge, Louisiana

Baton Rouge could experience a 3% drop in home prices, but as the values are not as high as in other states, with an average home value of $209,040, the projected price difference by next year ($6,271) is not as big.

4. San Francisco, California

San Francisco has had prohibitive prices for many years, and the average home value in February stood at $1,086,279. This may fall by 2.7% to $1,056,949 by February next year.

5. Oxnard, California

6. Los Angeles, California

7. Sacramento, California

8. New Orleans, Louisiana

9. Portland, Oregon

10. Las Vegas, Nevada