MARKET & TRENDS: MARKET CORRECTIONS
Correction Cascade WHEN WILL HOME PRICES REALIGN WITH INCOME LEVELS?
INGO WINZER
S ince 2021, home prices are higher that they’ll have to come back down. Home prices can be out of line with local incomes for a while, as they are right now, but not for long. During the last 50 years, they’ve always come back in line with income levels. But when exactly will that happen? And which markets are at greatest risk? Local price bubbles usually end when the local economy, whose rapid growth started the bubble in the first place, sharply higher in every market across the country—so much cools off. One very strong indicator of local economic growth is the rate
BUSINESS SERVICES JOB GROWTH
POSSIBLE HOME PRICE DROP
CORRECTION CASCADE
-4.3%
MEMPHIS, TN
17%
-3.1%
CHICAGO, IL
1%
-2.7%
MINNEAPOLIS, MN
12%
-2.3%
SAN DIEGO, CA
17%
-2.2%
OKLAHOMA CITY, OK
17%
-2.1%
WEST PALM BEACH, FL
37%
7.5%
LAS VEGAS, NV
32%
6.7%
FORT WORTH, TX
42%
6.4%
RALEIGH, NC
29%
6.1%
MIAMI, FL
34%
2.9%
NASHVILLE, TN
35%
2.0%
PHOENIX, AZ
33% LOCAL MARKET MONITOR, CARY NC, a Vertical IQ Product
32 | think realty magazine :: march – april 2024
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