TR Mar-Apr 2024-lr

MARKET & TRENDS: FALLING PRICES

Falling Prices Won’t Stop Local Investors MORE LOCAL INVESTORS EXPECT A PRICE CORRECTION IN 2024. THEY’RE STILL BUYING.

DAREN BLOMQUIST

A n increasing number of local real estate investors buying distressed properties on Auction. com expect home prices and rents to fall in 2024, but most still plan to bid at least as aggressively at auction as they did in 2023, given stubbornly low housing inventory. Forty percent of more than 400 Auction. com buyers surveyed in January said they expect home prices to decrease in 2024 in the markets where they operate. That was up from 32% in a 2023 survey and up from 17% in a 2022 survey. Buyers located in the Southeast region of the country were the most pessimistic in terms of home prices, with 46% saying they expect home prices to decline in 2024—the highest of any region and up from 37% in 2023 and up from just 12% in 2022.

SHARE OF LOCAL INVESTORS EXPECTING HOME PRICE DECREASE

2022 SURVEY

2023 SURVEY

2024 SURVEY

46%

43%

40%

38%

38%

37%

35%

33%

32%

29%

21%

17%

13%

12%

7%

Central

Northeast

Southeast

West

U.S. Source: Auction.com buyer surveys

28 | think realty magazine :: march – april 2024

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