While it’s nearly impossible to time the housing market, certain parts of the country are expected to fare better than others this coming year, according to new data from Realtor.com®.
While the 2024 housing market forecast for real estate investors is projecting stable conditions with modest growth across most of the country, these stand-out markets are poised for increases in both sales volume and sales prices.
You might be shocked to find that there is not a Texan or Floridian market in sight on the list of the top 10 real estate markets to watch in 2024. After dominating the hot market lists for years, it seems that everyone who wants to move to these two states has done so.
You might be even more surprised to see that 5 of the top 10 markets for 2024 are located in California. In fact, those five must-watch CA cities are all concentrated in Southern California. After a slow 2023, it seems as though SoCal has more room to grow in the coming year.
While affordability has long been an issue for CA buyers, the demand remains high, and inventory remains low. While interest rates are not expected to get anywhere near the 5%-mark buyers enjoyed for so long, a dip below 7% could incentivize homebuyers and investors alike to finance those high-value CA properties. Just as importantly, sellers may be more inclined to sell, knowing that they’ll be able to afford the mortgage on a new home, which can increase sales in the region.
Does your favorite SoCal city make the list of hot housing markets for 2024? Let’s find out…
Top 10 Real Estate Markets to Watch in 2024
1. Toledo, OH
Toledo, Ohio might not be the most exciting city on this list, but it is the one with the greatest potential for home sale and price growth in 2024.
Located about an hour southwest of Detroit, Toledo has maintained a stable housing market despite nationwide fluctuations. Housing prices have remained low, making it less susceptible to extreme market swings.
The city has attracted new buyers seeking affordable homes, and investors have been flipping homes for modest profits. Entry-level homes in suburban areas like Sylvania and Holland range from $250,000 to $300,000, while homes within the city limits can be found for around $150,000.
● Median List Price (as of November 2023): $200,000
● Forecasted change in sales price for 2024: 8.3%
● Forecasted change in the number of home sales for 2024: 14%
2. Oxnard, CA
Just up the 101 freeway from Los Angeles, you’ll find Oxnard, CA. This agricultural mini-metro includes popular communities like Ventura and Thousand Oaks.
Oxnard home prices are slightly more affordable than in LA, but not by much. Nestled between LA and Santa Barbara, Oxnard is home to high-earners who prefer the slower pace of life available in Ventura County. So there is high demand despite the high price tags. List prices were up 22% year-over-year as of October 2023, with homes selling more quickly than in the previous year.
Single-family ranch homes will likely cost you around $1 million, while small condos in downtown Oxnard can be found for around $600,000.
● Median List Price (as of November 2023): $1,037,000
● Forecasted change in sales price for 2024: 3.3%
● Forecasted change in the number of home sales for 2024: 18%
3. Rochester, NY
With a scenic location on Lake Ontario and affordable home prices, Rochester, NY is an upstate destination. Last year, the city was awarded $10 million to revitalize structures downtown, which is expected to make Rochester even more appealing.
The Kodak headquarters is a major local employer in this blue-collar community, which also offers lots of manufacturing jobs.
Most of the local housing market is comprised of single-family homes in the $200,000 - $300,000 range. But you can also find townhomes for under $200,000.
● Median List Price (as of November 2023): $239,000
● Forecasted change in sales price for 2024: 10.4%
● Forecasted change in the number of home sales for 2024: 6.2%
4. San Diego, CA
San Diego is world-famous for its ideal weather, miles of beautiful beaches, exceptional schools, and high home prices.
Property values went through the roof during the pandemic, before correcting to more reasonable prices by the end of 2022. 2023 brought more sustainable gains. Despite the high interest rates cooling buyer demand, the low inventory is enough to keep the market growing.
Large family homes can still be purchased for under $1 million. And condos in the convenient Mission Valley neighborhood can be found for under $500,000.
● Median List Price (as of November 2023): $995,000
● Forecasted change in sales price for 2024: 5.4%
● Forecasted change in the number of home sales for 2024: 11%
5. Riverside, CA
Riverside, an area just east of Los Angeles, has done very well for itself since the pandemic. Known for its citrus groves, Riverside has long attracted residents looking for the Southern California lifestyle on a more affordable budget. In fact, home prices in Riverside are about half of what they are in LA.
The issue in Riverside is inventory. There is strong demand, but not enough homes to go around. This is keeping property values high. The hope is that more homeowners will be listing homes on the market this year, increasing the availability of homes for sale and boosting the number of sales.
● Median List Price (as of November 2023): $585,000
● Forecasted change in sales price for 2024: 2%
● Forecasted change in the number of home sales for 2024: 13.8%
6. Bakersfield, CA
Drive about two hours straight up the 5 Freeway from Los Angeles, and you’ll hit Bakersfield, a mini-metro with just over 900,000 residents.
This is another agricultural area that’s been catching the interest of Angelenos, including remote workers looking for more affordable housing options. The Northernmost city of the SoCal entrants on this list, Bakersfield is located inland, around 137 miles from the ocean. Being further from the cities and the water makes this fair-weather metro much less costly than other CA locations.
You can find sizable homes for under $400,000. And with the high demand, there is a fair amount of new construction coming up, which could increase the number of home sales in 2024.
● Median List Price (as of November 2023): $385,000
● Forecasted change in sales price for 2024: 2.3%
● Forecasted change in the number of home sales for 2024: 13.4%
7. Springfield, MA
Heading to our first city on the East Coast, Springfield MA is appealing to buyers with its strong job market and affordable home prices.
Springfield is located on the Connecticut River, about 90 minutes west of Boston. Even with steady sales price increases since mid-2022, Springfield still offers properties for around 50% of what you would pay in Boston.
Nice family homes are priced around $350,000, with townhouses and condos available for even less.
● Median List Price (as of November 2023): $350,000
● Forecasted change in sales price for 2024: 4.2%
● Forecasted change in the number of home sales for 2024: 10.5%
8. Worcester, MA
Staying in MA, Worcester comes in at number eight on our list of real estate markets to watch in 2024. Located mid-way between Boston and Springfield, Worcester is a happy medium for residents who are willing to pay a little more to keep their city commute to around an hour.
The issue for Worcester homeowners is that there isn’t enough local inventory, so they aren’t sure they would have a place to move to if they listed their homes for sale. However, if rates dip and more homeowners are incentivized to list, the rest of the sellers-in-waiting might take the leap and list their homes.
● Median List Price (as of November 2023): $475,000
● Forecasted change in sales price for 2024: 4.8%
● Forecasted change in the number of home sales for 2024: 9.1%
9. Grand Rapids, MI
Grand Rapids, known for its brewery scene and furniture production, has experienced significant home price growth since the COVID-19 pandemic. As with the other cities on this list, the shortage of available homes is hindering the real estate market. Locals see the lack of housing inventory as a more pressing issue than interest rates, with potential buyers unable to find suitable homes.
The area still attracts newcomers, including baby boomers who are relocating to be closer to family. When interest rates were low, local buyers were snatching up large homes, simply because the monthly mortgage was affordable. But today’s buyers are looking for more modest homes, creating a shift in the market dynamics.
● Median List Price (as of November 2023): $390,000
● Forecasted change in sales price for 2024: 7.2%
● Forecasted change in the number of home sales for 2024: 6.1%
10. Los Angeles, CA
With the sensationalized headlines about the Los Angeles Exodus, one would think there’s no one left in LA to buy property. But of course, there will always be demand for the City of Angels.
It’s true that the LA housing market reacted more dramatically to higher interest rates than more affordable markets did. In many neighborhoods, prices even slipped as buyer demand dropped severely in 2023.
Slowly, buyers have started to realize that we were never in a real estate bubble, so no market crash coming. They’re also realizing that interest rates will not return to pandemic-era levels any time soon. So they’re ready to make a move at current rates and current prices. And, in many cases, they’re in a strong position to do so as they have been making short-term gains in the stock market.
So get ready to see more buyer competition, higher prices, and more sales for Los Angeles in 2024.
● Median List Price (as of November 2023): $1,150,000
● Forecasted change in sales price for 2024: 3.5%
● Forecasted change in the number of home sales for 2024: 9.2%
Invest with Gatsby Investment in 2024
Are you ready to take advantage of the top 10 real estate markets to watch in 2024? Gatsby Investment can help!
Based in Beverly Hills, Gatsby offers residential real estate investment deals in California to investors all over the world. We specialize in real estate syndication, which allows investors to buy shares in a deal for much less than the cost of direct ownership. In many cases, you can buy into a million-dollar multi-family development for as little as $25,000.
