--- title: 5 Cities Where Home Prices Are Most Likely to Fall Next Year description: The housing market is rapidly cooling off. Here are five cities where home prices are most likely to drop, including Reno and Boise City. authors: - name: Sarah Hansen role: Senior Writer url: https://money.com/author/sarah-hansen/ bio: Sarah Hansen is a senior writer at Money covering all things personal finance. Previously, she covered economic policy and capital markets on the breaking news desk at Forbes. education: Northwestern University, New York University at_money_since: 2021 articles: 347 covers: - Housing - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Professional Services - Retirement - Shopping - Taxes social: - https://www.linkedin.com/in/sarah-m-hansen/ former_staff: true editors: - name: Brad Tuttle role: Senior Editor url: https://money.com/author/brad-tuttle/ bio: Brad Tuttle is a former senior editor at Money with over 10 years’ experience covering a vast number of personal finance topics, including careers, cars, travel, budgeting, investing, insurance, credit cards, consumer psychology, real estate, banking, and shopping and deals. education: Columbia University School of Journalism, MS at_money_since: 2014 articles: 366 covers: - Housing - Banking - Business - Career Advice - Credit - Credit Cards - Economy and Politics - Education - Health and Wellness - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Personal Finance - Pets - Professional Services - Retirement - Shopping - Taxes - Technology social: - https://twitter.com/bradrtuttle - https://linkedin.com/in/brad-tuttle-834b225 former_staff: true published: '2022-10-05T17:33:16.000Z' modified: '2024-01-10T13:17:59.000Z' section: Housing tags: - News word_count: 381 canonical: https://money.com/cities-home-prices-most-likely-fall/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Reno Nevada Skyline](https://img.money.com/2022/10/News-5-Cities-Home-Prices-Decline.jpg) *Reno, Nevada* It’s been quite a turnaround for the once-hot housing market: Home prices are [already falling](https://money.com/home-prices-falling-fastest-pace-2008/) in many cities, and there’s more where that came from. [New data](https://www.corelogic.com/intelligence/u-s-home-price-insights-october-2022/) from real estate company CoreLogic predicts the cities that are most at risk of home price declines over the next year. Here are the top five: 1. Crestview-Fort Walton Beach-Destin, Florida 2. Bremerton-Silverdale, Washington 3. Bellingham, Washington 4. Boise City, Idaho 5. Reno, Nevada Each city on the list has a more than 70% chance that prices will fall, according to CoreLogic’s analysis. In some cases, price declines are already underway. In August, home prices in Boise City were 3% lower than they were a year earlier, according to data from real estate brokerage Redfin. The city was also named by home-financing startup Knock as one of a handful of places where homebuyers now have the [advantage over home sellers](https://money.com/cities-buyers-markets-homes-for-sale/) — a clear sign of a major shift in the real estate market there. ## High mortgage rates push home prices lower [Mortgage rates](https://money.com/current-mortgage-rates/) have been a major driver of home price reductions over the past few months. The average fixed rate on a 30-year mortgage climbed to 6.7% last week. That’s more than double the average fixed rate on the same mortgage at the beginning of the year. As borrowing costs rise, more and more buyers are pulling out of the market. That’s good news for those who can still afford to buy, because sellers are adjusting accordingly by cutting prices: “They understand that potential buyers can’t afford the price they want due to the surge in mortgage rates,” Moody’s Analytics chief economist Mark Zandi [tweeted](https://twitter.com/Markzandi/status/1577352295809191938) Tuesday. Of course, it’s still a seller's market in many ways (nationally, prices are still higher than they were last year), and buyers may be forced to compromise in some way, either by [opting for smaller homes](https://money.com/high-mortgage-rates-smaller-homes/) or choosing a home in a more affordable location. The other option, of course, is to wait and see if home prices fall further down the line — which is exactly what many [housing forecasts](https://money.com/home-price-forecasts-boom-over/) expect to take place. ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/cities-home-prices-most-likely-fall/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Housing", "item": "https://money.com/housing/" }, { "@type": "ListItem", "position": 3, "name": "Home Prices", "item": "https://money.com/home-prices/" }, { "@type": "ListItem", "position": 4, "name": "5 Cities Where Home Prices Are Most Likely to Fall Next Year" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/cities-home-prices-most-likely-fall/#webpage", "url": "https://money.com/cities-home-prices-most-likely-fall/", "name": "5 Cities Where Home Prices Are Most Likely to Fall Next Year", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2022-10-05T17:33:16.000Z", "mainEntity": { "@id": "https://money.com/cities-home-prices-most-likely-fall/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/cities-home-prices-most-likely-fall/#breadcrumb" }, "dateModified": "2024-01-10T13:17:59.000Z" }, { "@type": "NewsArticle", "headline": "5 Cities Where Home Prices Are Most Likely to Fall Next Year", "articleSection": "Housing", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2022/10/News-5-Cities-Home-Prices-Decline.jpg", "width": 2880, "height": 1920, "caption": "News-5-Cities-Home-Prices-Decline" } ], "author": [ { "@type": "Person", "name": "Sarah Hansen", "url": "https://money.com/author/sarah-hansen/", "@id": "https://money.com/author/sarah-hansen/#author", "description": "Sarah Hansen is a senior writer at Money covering all things personal finance. 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