Realtor.com recently released a 2024 affordability estimate, which highlighted US mortgage rates reducing and property prices falling as well as created a list of markets where “activity” will be highest.
Experts expect that as US house sales increase, so will prices, which is great news for anybody selling a property in the Northeast, Midwest, or Southern California.
The site also included expected price increases in addition to the estimated rise in existing property sales.
The markets ranking higher are projected to be among the most active.
Please keep in mind that new construction sales are not included in the data.
Rochester, New York
San Diego, California
Worcester, Massachusetts / Connecticut
Grand Rapids, Michigan
Los Angeles, California
Several cities in California were included on Realtor.com’s list, despite the fact that this area has more mortgage holders than many other markets.
More mortgages indicate a more volatile housing market, as interest rates might fluctuate owing to government policies.
“While sales will be higher than in 2023, sales in the top five California markets are still 20%-35% lower than in a typical year before the pandemic in 2017-2019,” the Realtor.com press release said.
It added, “And these markets are more sensitive to changes in mortgage-rate changes, given that only 31.6% of homeowners in these Southern California markets don’t have a mortgage.”
The Northeast and Midwest markets, on the other hand, are less susceptible, with 37.9% of homeowners not having mortgages.
These marketplaces are considerably more cheap than those in California, which helps to stimulate activity.
Toledo, a rust belt city in Ohio with a typical property price of $200,000, took the top place.
In 2024, that price is expected to rise by 8.4%.
This is in stark contrast to the second market, Oxnard, California.
The median property price in the affluent hamlet north of Los Angeles is more than $1 million.
Despite the high prices, activity in the region is still increasing following a year of slow activity.
“One of the reasons why Southern California is expected to do well in 2024, it’s coming off a really slow 2023,” Realtor.com’s chief economist Danielle Hale told the US Sun.
Rochester, New York has a low cost of living, with an average house price of $239,000.
Home prices in the city are predicted to soar by more than 10%.
Time of selling
According to Hale, rising housing prices in these markets make it simpler for homeowners to sell rather than buy.
Even though prices are expected to fall across the country, these markets are still reporting rises.
These increases may be influenced in part by a lack of available homes.
However, Hale noted that these forecasts might vary depending on interest rates.
Changes in federal policy might have an influence on market activity, particularly in the more rate-sensitive California markets.
“If interest rates don’t decline as much as we’re expecting,” she said, California could see “sluggish activity.”
They may also experience increased activity if interest rates fall quicker than Realtor.com predicts.
Realtor.com has disclosed to the US Sun that rental markets are in high demand.
To save money on housing, many Americans turn relatives into roommates.