Generally speaking, 2020 is expected to be a tepid year for the U.S. housing market. Existing home sales are expected to drop by 1.8% on average, according to Realtor.com, thanks to an uptick in new construction and a lack of affordable inventory in many markets.
Home prices are expected to continue to rise, with the average U.S. home value forecast to grow by 0.8% over the next year. However, this is much lower than the gains we've seen in recent years. Over the past five years, the average U.S. home has seen its value grow by more than 25%, so it's fair to say that a gain of less than 1% in 2020 would be a significant slowdown.
Having said that, it's important to realize that any statistics having to do with the U.S. housing market are big generalizations. There are some markets that are expected to thrive in 2020 -- for example, sales volume is expected to grow by 5.5% in my hometown of Columbia, South Carolina, and prices are expected to rise by more than 8% in Boise, Idaho.
On the other hand, there are some markets that experts expect to be far weaker than the U.S. average in 2020. According to Realtor.com's 2020 Housing Market Predictions, which analyzed the 100 largest real estate markets in the United States, here's where we can expect sales volume and home prices to fall the most.
Markets where sales are expected to decline
As I mentioned, sales volume is expected to fall in 2020 when it comes to existing homes, with the average U.S. market forecast to see a 1.8% year-over-year decline. However, there are some markets that are expected to experience declines that are much larger: