The real estate world in 2024 is subject to a lot of change. Several policies that will significantly affect the market may be implemented. As some properties will be more expensive, there are a couple whose value will drop.
Economic conditions, shifts in buyer preferences, and changes in environmental policy are some of the factors contributing to the change in prices. Furthermore, a lot of people are shifting towards rote work. This affects the demand for properties in urban areas.
Therefore, those who are looking to buy, investors, and even homeowners need to understand these ever-shifting dynamics. Five major types of homes will decline in market value this year.
First, homes in climate-vulnerable areas will be affected significantly. This is because of climate change, and the effects of global warming are increasing with time. Therefore, places prone to climate-related disasters, such as coastal areas susceptible to hurricanes, flood zones, and regions at high risk of wildfires, would decrease in value.
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There is also a heightened level of awareness and caution among people. Insurance costs are also skyrocketing, and people would rather move to more protected regions. Therefore, buyers can take advantage and buy these properties at cheaper prices.
Second on this list are houses near polluting industries. Experts expect properties close to factories, refineries, or heavily trafficked highways to reduce value. They are less desirable as they are subject to poor air quality, noise pollution, and other environmental hazards.
Oversized properties in economically declining neighborhoods will also see a huge decline in value. These homes have high maintenance costs and property taxes, making their owners rethink their value. Without a corresponding lifestyle or community benefit, they will have no choice but to put it up for sale at a price way less than it should be.
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Another example of declining properties is outdated single-family homes. First, most of them do not hold a lot of space. Therefore, they don’t appeal to buyers as much.
For those who have not updated or renovated the properties, there is an even bigger decline in its value. This is because people want modern houses with modern amenities. They do not want houses with old heating systems, poor insulation, or outdated kitchens and bathrooms.
As buyers will generally lean towards smart homes or tech-friendly homes, the value of these older homes is decreasing rapidly. Last on this list are luxury urban condos. The pandemic caused a huge shift in the real estate market. Therefore, most people do not want to live in urban areas anymore.
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Instead, they are majorly in suburban and rural homes. As remote work is now more popular, houses in urban areas are seeing less value. There is an increase in the need to prioritize space and comfort over proximity to urban jobs.
High-end condos, which used to be quite pricy, are now reduced due to a lack of buyers. Therefore, one can take advantage of these reduced prices and snag a luxury condo for a lower rate.
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