Published by FOX Business | December 4, 2023
U.S. housing markets that saw the biggest sales declines in 2023 are projected to achieve double-digit sales growth in the new year, according to data from Realtor.com.
Industry economists with the real estate listings website determined the top 10 housing markets that are expected to fare well in 2024 in terms of sales growth. Home sales are expected to rise slightly over the coming year nationwide, but Realtor.com expects markets in the Northeast, Midwest and Southern California “to rebound from significant sales declines in 2023.”
In California, Oxnard, Riverside, Bakersfield, San Diego and Sacramento are among the markets that are slated to see double-digit sales growth, according to industry economists with the real estate listings website. On average, these five metros are expected to have sales growth of 13.1% in 2024.
Toledo, Ohio; Las Vegas, Nevada and Springfield, Massachusetts are also expected to see a double-digit jump in sales activity.
Overall, Oxnard, Toledo and Riverside are expected to see the biggest growth in sales at 18%, 14% and 13.8%, respectively, according to the data.
However, Toledo stands out as the only market on the list that is projected to do better than the average home sales count during pre-pandemic times.
Realtor.com economists noted that there are several factors drawing buyers to the Midwest and Northeast. For one, they offer relatively affordable options in comparison to larger urban centers, according to the report. As of October, most of the metros listed on Realtor.com’s top 10 metropolitan areas had median listing prices below the national average.
The top markets in these regions “also exhibit a degree of insulation from the impact of higher mortgage rates,” according to the Realtor.com report. This is due in large part to a higher proportion of homeowners residing in housing units without a mortgage.
Toledo has the highest share of homeowners among the top 10 markets who own their homes outright at 41.2%, according to the recent American Community Survey.
Aside from that, economists at Realtor.com reported that the Midwest and Northeast offer a higher quality of life with cultural amenities, recreational opportunities, and educational institutions.