As we bid farewell to 2023 and step into the new year, it’s a great opportunity to direct our attention to the intriguing trends and shifts in the real estate market in 2024. This year may surprise you with housing hotspots set to surge in states you may not expect. So, where will the investment opportunities in real estate be next year?
Whether you’re looking to diversify your portfolio or searching for your dream property, the following housing market forecast lists the ten top-performing real estate markets expected to flourish and what the future holds for buyers, sellers, and mortgage rates.
2024 housing market forecast overview
The new year may bring a subtle thawing of the frozen real estate market, which has remained gridlocked due to record-high mortgage rates that have squelched buyers’ ability to afford the few homes going up for sale. In 2024, home prices may inch down by a small margin of 1.7%, motivating buyers and sellers to make some moves.
Mortgage rate impact on housing
The projections for 2024 indicate that mortgage rates may fall slightly. However, unexpected events could lead to short-term rate hikes that may cut off sales growth, particularly in the predicted hotspots in California.
2024 home sales predictions
Unfortunately, the housing shortage will continue into 2024, with a few exceptions in the below-listed areas. With mortgage rates higher than 6%, the estimated two-thirds of homeowners locked into significantly lower rates below 4% still have little reason to put their homes on the market.
Top-performing real estate markets predicted for 2024
Where are the rising markets in 2024? This city-wise real estate analysis provides detailed insights into the most promising locations that will see home sales growing despite the stalled market nationally.
Surprisingly, this city near Detroit, MI, tops the list. Toledo has experienced a balanced and stable housing market with lower prices than the national median. Although mortgage applications have decreased recently, buyers and investors can find entry-level homes in the suburbs and within the city limits for reasonable asking prices.
Located north of Los Angeles, this scenic coastal area, which includes Thousand Oaks and Ventura, offers a more affordable housing option over living within the city limits of Los Angeles. However, the housing market in Oxnard is trending more expensive.
Rochester, New York
With its picturesque setting on Lake Ontario and affordable housing options enticing buyers, Rochester has become an attractive real estate destination, especially after last year when the city received a $10 million grant for revitalizing its downtown area. Single-family homes dominate the market.
San Diego, California
After high mortgage rates and home prices made this area financially unaffordable for many buyers, sellers responded by reducing prices. As a result, some buyers are now opting for San Diego over Los Angeles, as they can find larger homes in good school districts for less money.
Homebuyers looking for more affordable options outside of Los Angeles will find the prices they’re seeking here, making Riverside a housing hotspot. However, despite the demand and lower interest rates, this area faces a significant shortage of properties for sale.
Remote workers looking to escape the high real estate prices of Los Angeles have set their sights on this affordable agricultural gem. Plus, the recent decrease in mortgage rates has led to increased activity in this housing market.
Despite being 90 minutes west of Boston, this city offers home prices starting at less than half of Boston’s median price. Along with a low unemployment rate, this area looks to become quite attractive for buyers.
Like Springfield, Worcester has become a more affordable option to Boston. However, rising demand has significantly increased median home prices in the past four years. Plus, the lack of available homes has cooled the market.
Grand Rapids, Michigan
With a steady demand of buyers, especially baby boomers looking to be closer to family, Grand Rapids has experienced a surge in home prices. While a lack of available homes hinders the market, buyers have adjusted their expectations to find something within their budget.
Los Angeles, California
While the housing market here has struggled in recent years due to high mortgage rates, resulting in slower sales and price reductions, the market is beginning to show signs of recovery. Once mortgage rates decrease, it should result in a surge in buyers and increased competition in the market.
Summing up real estate trends 2024
As they say in real estate, it’s all “location, location, location!” Despite the real estate market remaining in a log jam that may loosen only a bit this year, opportunities still abound if you know where to look.