The U.S. real estate market has come a long way since the mortgage and foreclosure crisis. The national average home price has risen by about 27% since the lows of early 2012, and many markets have done even better.
However, most experts are projecting the market to cool off considerably over the next year or so. Many markets are projected to see gains of just a couple percentage points. And, many markets are expected to actually decline in value over the next year.
According to Zillow, home values are expected to decline in 23 metropolitan areas in the United States, and if you want to see how your local market is projected to perform, check out Zillow's research here and download the complete Zillow Home Value Forecast data.
Here are the 5 metropolitan areas where home values are expected to decline the most over the next year. If you were thinking about buying a house in any of these areas, you might get a better deal if you wait.
6. Ocean City, NJ (Projected 1-Year Decline 1.6%)
The Ocean City Metropolitan Area includes all of Cape May County in New Jersey, and represents the southernmost coastal area of the state. The area has a fairly expensive market, with the average home worth about a half million dollars. New Jersey's coast, or "the shore" was hit very hard by Hurricane Sandy, and the recovery has made for a sluggish housing market.
5. Houma, LA (Projected 1-Year Decline: 1.8%)
This relatively small metropolitan area is home to about 60,000 residents. Houma's market has rebounded strongly since the crisis, and may have come too far, too fast. In fact, the average home value in Houma is actually more than its pre-crisis peak.