Introduction:
We all know someone who struck gold in real estate. They bought low, sold high, and now they’re living the dream. But where’s the next jackpot hiding? Realtor.com’s 2024 forecast might surprise you. While national prices may dip, some unexpected spots are set to shine. Ironically, two of America’s priciest states claim 7 of the top 10 markets. California leads with 5, while Massachusetts snags 2. Why? As mortgage rates fall, buyers will flood back in, driving up prices and sales. These areas offer relative affordability or lifestyle perks that attract remote workers. But remember, this crystal ball only works if rates cooperate. If they spike again, all bets are off. Ready to explore these hidden gems?
1. Toledo, OH
Toledo might surprise you as a top real estate market for 2024. This Rust Belt city, an hour from Detroit, offers stability in a chaotic housing landscape. With a median list price of $200,000 in November, it’s less than half the national average. Realtor.com forecasts an 8.3% price increase and 14% more sales in 2024. Why? Toledo’s market stayed balanced during recent ups and downs. Rick Turner of Key Realty notes an influx of buyers seeking affordable homes. Investors are also active, though less so lately. Entry-level suburban homes range from $250,000 to $300,000 in areas like Sylvania and Holland. City starters can be found for about $160,000. Toledo’s steady market and low prices make it an unexpected gem for 2024.
2. Oxnard, CA
Oxnard, a coastal gem just an hour north of Los Angeles, is poised for growth in 2024. With a median home list price of $1,037,000, it offers a slightly more affordable alternative to LA’s $1.15 million price tag. The market is expected to see a 3.3% increase in home sales prices and an impressive 18% jump in sales volume.
Oxnard’s appeal lies in its beautiful beaches and proximity to agricultural areas. The housing stock is diverse, featuring ranch-style homes, multilevel properties near the water, condos, and townhomes. Buyers can find options across various price points. For instance, a single-level, four-bedroom house might cost around $735,000, while a three-bedroom condo in downtown Oxnard could be found for about $565,000.
The area’s rapid price growth – up 22% in October compared to the previous year – suggests increasing demand. Homes are selling faster than in 2022, indicating a hot market. As mortgage rates potentially decrease in 2024, Oxnard could see even more buyer interest, particularly from those priced out of Los Angeles but still wanting to stay in Southern California.
Are you considering Oxnard for your next home purchase? What attracts you most about this market?
3. Rochester, NY
Rochester’s charm lies in its affordability and scenic location on Lake Ontario. With a median home list price of $239,000, it’s a steal compared to nearby metros. The forecast looks bright, with a 10.4% price increase and 6.2% sales growth expected in 2024.
This Rust Belt city has bounced back from tough times. A recent $10 million revitalization grant is breathing new life into downtown. The housing market offers diverse options, from single-family homes to townhouses and new builds.
Looking for a deal? A three-bedroom Colonial on an acre of land can be yours for about $250,000. Or snag a freshly renovated three-bedroom for under $175,000. Rochester’s affordability and ongoing improvements make it a hidden gem for savvy buyers seeking value in 2024.
4. San Diego, CA
San Diego’s inclusion on this list might raise eyebrows. With a median home list price of $995,000, it’s far from affordable for many. Yet, the forecast looks promising. Home sales prices are expected to rise by 5.4%, while home sales could jump by 11% in 2024.
The Southern California gem took a hit when mortgage rates surged. High prices and rates forced many sellers to slash prices. But the tide is turning. Buyers from pricier Los Angeles are now eyeing San Diego for better value. Julie Aragon, a mortgage broker, notes increased demand for larger homes in good school districts.
For those with deep pockets, a newly renovated four-bedroom house is available for about $970,000. Budget-conscious buyers might consider a one-bedroom condo in Mission Valley for $435,000. As mortgage rates potentially ease, San Diego’s market could heat up further, making it a surprising hotspot for 2024.
5. Riverside, CA
Riverside’s housing market is poised for growth in 2024. With a median home list price of $585,000, it offers a more affordable option compared to nearby Los Angeles. The forecast predicts a 2% increase in home sales prices and a substantial 13.8% jump in sales volume.
Despite its potential, Riverside faces a significant challenge: lack of inventory. Local real estate broker Doug Shepherd notes, “No one is selling.” This scarcity of available properties is holding back market activity.
Interestingly, 50% to 60% of buyers are relocating from pricier areas like Los Angeles, where median home prices are nearly double those in Riverside. These buyers find Riverside’s market accessible even with current interest rates.
The area’s appeal lies in its relative affordability and proximity to major urban centers. As Shepherd puts it, “If we can put more homes on the market, we’ll have more sales. Demand is there.” This suggests that if inventory increases, Riverside could see even stronger growth in the coming year.
Conclusion
The 2024 hot real estate markets list offers some unexpected gems. From affordable Midwest cities to pricey California hotspots, these areas showcase the diverse opportunities in today’s housing market. As remote work continues to shape where people live, we’re seeing increased interest in more affordable regions and smaller cities near major metros.
What do you think about these markets? Are there any surprises on the list? Or perhaps you know of an up-and-coming area that deserves attention? Share your thoughts in the comments below. Your local insight could be invaluable to fellow house hunters and investors looking for the next big opportunity in real estate.
