A promising rebound could happen to some of the nation's real estate markets following a tough 2023, according to a report.
Industry economists with Realtor.com, a real estate listings website, on Monday said they expect home sales across the United States to increase slightly over the coming year. However, at least 10 housing markets are expected to see a rebound, specifically those in the Northeast, Midwest, and Southern California.
Which Housing Markets Are Expected To See a Rebound?
In California, the cities of Bakersfield, Oxnard, Riverside, and San Diego are slated to see double-digit growths in home sales next year. Individually, Oxnard may see an 18% sales growth in 2024; while Bakersfield may see 13.4%; Riverside, 13.8%; and San Diego, 11%.
Beyond the West Coast, cities like Toledo, Ohio; Las Vegas, Nevada; and Springfield, Massachusetts, are also expected to see double-digit jumps in house sales activity. However, Toledo is projected to do better than other markets, expected not only to see a 14% growth in sales but also to surpass its home sales figures before the COVID-19 pandemic.
It is important to note that most of the metros listed by Realtor.com's analysts had median listing prices below the national average.
Overall, analysts attribute the prospects of a potential buyer surge in the Midwest and Northeast to several factors, including the relatively affordable housing options in the area, their resilience to the impact of rising mortgage rates, and the higher quality of life.
The forecast comes after new home sales dropped to an annual rate of 679,000 in October. The number of new home sales was far lower than the 725,000 new homes analysts projected would be sold.
In addition, October also had lower home sales than September's 719,000, which had already been revised lower by about 40,000 units.
October's low home sales were attributed to high mortgage rates and a shortage of inventory in the housing market. However, researchers for real estate company Zillow expect more listings next year as homeowners have lost patience waiting for mortgage rates to fall.
