Stability Amidst the Dip: Markets Set to Shine in 2024, Says Realtor.com Economist
By Dolores Quintana
Realtor.com has pinpointed real estate markets poised for home sales price growth, even amid a national dip in their most recent forecast. These markets are expected to experience a surge in existing home sales, a contrast to the mostly flat trend seen in many other parts of the country.
Realtor.com Chief Economist Danielle Hale notes that the top 10 markets for 2024 have maintained stability, avoiding the significant price and sales booms witnessed in other regions. This steadiness sets them apart in the current landscape. Five out of the ten are in the state of California, although most are not within the Metropolitan Los Angeles area, which is rated number ten on the list. Oxnard, CA, is number two, San Diego is number four, Riverside is number five, and Bakersfield is number six.
The Realtor.com economics team made predictions for home sales prices and existing home sales, excluding new construction, in the 100 largest metropolitan areas. Interestingly, two of the nation’s most expensive states claim seven of the top 10 spots, with half located on the West Coast in California and two in Massachusetts.
This revelation may surprise observers, considering the increasing pursuit of affordability by homebuyers amid spiked mortgage rates and historically high home prices. The Golden State’s housing market faced challenges in the wake of soaring costs, leading to slumps in prices and dwindling sales.
However, many Southern California markets are expected to rebound in 2024. The projected decline in mortgage rates is anticipated to attract more buyers, bidding up prices. Additionally, increased seller confidence is expected to boost inventory and increase sales.
While these forecasts paint a positive picture, the wildcard remains mortgage rates. According to Hale, if rates rise again or fail to retreat to the mid-6% range, California markets’ anticipated price and sales growth may not materialize.