If you’re looking for a smart real estate investment, you might be wondering where to buy a home in the next year. Which areas will see the most growth in home prices and sales? To help you answer that question, Realtor.com® has released its 2024 forecast, which ranks the top 10 real estate markets in the nation based on their projected performance.

As outlined in an article by Clare Trapasso published on December 4th, 2023, these markets are expected to outperform the rest of the country in terms of home price appreciation and sales volume increase. They have been relatively stable in the past few years, avoiding the extreme highs and lows that other places have experienced.

Interestingly, most of these markets are located in two of the most expensive states in the U.S.: California and Massachusetts. While these states have faced some challenges in the housing market due to affordability issues, they are also home to some smaller and more affordable metros that are attracting buyers who want to live close to or work remotely from larger and pricier cities like San Francisco and Boston.

However, these predictions depend on how mortgage rates will behave in the coming year. If rates rise again or stay high, some of the California markets might not see the expected growth in prices and sales. “Lower mortgage rates will help to bring more buyers into the market, especially in California,” says Realtor.com Chief Economist Danielle Hale. “They will also encourage more sellers to list their homes, which will boost inventory and sales.” Curious to know which markets made the cut? Here are the top 10 real estate markets of 2024:

1. Toledo, OH

November median home list price: $200,000
Forecasted 2024 home price growth: 8.3%
Forecasted 2024 home sales growth: 14%

Toledo might not be the first place that comes to mind when you think of hot real estate markets, but this Rust Belt city has a lot to offer. Located on the shores of Lake Erie, about an hour from Detroit, Toledo has a low cost of living and a balanced housing market. “It’s a steady market that hasn’t seen the big ups and downs that other markets have,” says Hale. “That’s why they’re going to recover faster.” Toledo has attracted many buyers looking for affordable homes, as well as investors who buy and rent out properties, says local real estate agent Rick Turner, of Key Realty. However, investors have slowed down recently, leaving more room for regular buyers.

2. Oxnard, CA

Median home list price in November: $1,037,000
Predicted 2024 home sales price increase: 3.3%
Predicted 2024 home sales growth: 18%

Oxnard, a coastal city known for its agricultural roots and beautiful beaches, is located about an hour north of Los Angeles. It includes the communities of Thousand Oaks and Ventura. While it’s a more affordable option compared to Los Angeles, the price gap is narrowing. Home prices in Oxnard have risen by 22% compared to the previous year. The housing market here is diverse, with ranch-style homes, waterfront properties, condos, and townhomes. A single-level, four-bedroom, two-bathroom house is currently listed for $735,000. For those looking for a bargain, a three-bedroom, three-bathroom condo in downtown Oxnard is available for $565,000.

3. Rochester, NY

Median home list price in November: $239,000
Predicted 2024 home sales price increase: 10.4%
Predicted 2024 home sales growth: 6.2%

Rochester, located on Lake Ontario near the Canadian border, has become a popular real estate market due to its affordable home prices. The city, once home to Kodak, has seen a resurgence after receiving a $10 million grant for downtown revitalization projects. The housing market here is primarily made up of single-family homes, but townhomes and new constructions are also available. A three-bedroom, two-bathroom Colonial on over an acre of land is listed for just under $250,000. A recently renovated three-bedroom, 1.5-bath house is available for nearly $175,000.

4. San Diego, CA

Median home list price in November: $995,000
Predicted 2024 home sales price increase: 5.4%
Predicted 2024 home sales growth: 11%

San Diego, a city known for its beautiful beaches, warm weather, and the famous San Diego Zoo, might seem like an unexpected addition to this list. The city was hit hard by rising mortgage rates and high home prices, which led to a slowdown in the housing market. However, Julie Aragon, a mortgage broker at Aragon Lending, notes that buyers are moving from Los Angeles to San Diego, where they can find larger homes in good school districts for less money. A newly renovated four-bedroom, three-bathroom house is listed for about $970,000. A one-bedroom condo in the Mission Valley neighborhood is available for $435,000.

5. Riverside, CA

Median home list price in November: $585,000
Predicted 2024 home sales price increase: 2%
Predicted 2024 home sales growth: 13.8%

Riverside, known for its citrus groves and located about an hour inland from Los Angeles, continues to draw homebuyers from more expensive areas. However, the lack of properties on the market has been a challenge. Doug Shepherd, a real estate broker at Better Homes and Gardens Real Estate Champions, says that about 50% to 60% of his clients are looking for affordability in Riverside, where the median home price is nearly half that of Los Angeles. “Even with these interest rates, we’re still affordable to these buyers,” Shepherd says. “If we can put more homes on the market, we’ll have more sales. The demand is there.”

6. Bakersfield, CA

Median home list price in November: $385,000
Predicted 2024 home sales price increase: 2.3%
Predicted 2024 home sales growth: 13.4%

Bakersfield, an inland city about two hours north of Los Angeles, is gaining popularity among Los Angelenos and remote workers looking for more affordable housing options. According to real estate agent William Gordon, affordability has always been Bakersfield’s main attraction. With mortgage rates recently dropping to the lower 7% range, the housing market has seen a slight increase in activity. A four-bedroom, two-bathroom home with an in-ground pool, covered patio area, and chicken coops is listed for $399,000. Newly constructed houses are also available, ranging from $500,000 to $700,000.

7. Springfield, MA

Median home list price in November: $350,000
Predicted 2024 home sales price increase: 4.2%
Predicted 2024 home sales growth: 10.5%

Springfield, the hometown of renowned author Dr. Seuss, is attracting homebuyers with its affordable housing and low unemployment rate. Located about 90 minutes west of Boston on the Connecticut River, Springfield offers home prices that are less than half of Boston’s median price. A three-bedroom, 1.5-bathroom brick house with an in-ground pool is listed for $375,000. A two-bedroom, two-bathroom condo with a balcony is also available for those looking for a more affordable and low-maintenance option.

8. Worcester, MA

Median home list price in November: $475,000
Predicted 2024 home sales price increase: 4.8%
Predicted 2024 home sales growth: 9.1%

Worcester, like Springfield, offers a more affordable alternative to Boston. The city has seen a 42% increase in median home list prices over the past four years due to increased demand. The buyers in Worcester are a mix of Bostonians, investors, and locals who can afford the higher prices and mortgage rates, according to real estate broker Nick McNeil. If rates drop to the 6% range, as predicted by Realtor.com economists, more sellers and buyers are expected to enter the market, leading to increased competition and higher prices.

9. Grand Rapids, MI

Median home list price in November: $390,000
Predicted 2024 home sales price increase: 7.2%
Predicted 2024 home sales growth: 6.1%

Grand Rapids, known for its breweries and office furniture production, has seen significant home price growth during the COVID-19 pandemic. However, the lack of available homes is slowing down the market. According to real estate broker Steve Volkers, there are still many potential buyers, but not enough homes for sale. The city continues to attract new residents, including baby boomers wanting to be closer to family and people moving from other parts of the state.

10. Los Angeles

Median home list price in November: $1,150,000
Predicted 2024 home sales price increase: 3.5%
Predicted 2024 home sales growth: 9.2%

The Los Angeles real estate market faced challenges as mortgage rates increased. This led to a slowdown in price growth, longer selling times, and price reductions by many sellers. However, the market has shown signs of recovery in recent months. “Many of our clients have come to accept that, after a year and a half of higher mortgage rates, these are the new normal,” says mortgage broker Aragon. The main issue: There is a shortage of homes on the market. Aragon predicts that once rates decrease, more buyers will enter the market, leading to increased competition.

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