Whether you’ve been in the industry for years, are just starting out as a new real estate agent, or are just thinking about getting your license, it’s important to stay current on the latest real estate trends. With some changes expected in 2024, now is the time to prepare both yourself and your clients for what’s to come.
Over the last year, we saw sales slow as higher interest rates deterred homebuyers from making a move. California was hit extra hard, mostly because home prices are so high there. The median California sales price is $739,200, compared to the national average of just $402,343. Year-round sunshine is expensive!
Interestingly, in a recent report published by the National Association of REALTORS (NAR) Research Group, three of the top five housing markets for 2024 are in California. These rankings are based on inventory levels, population growth, job opportunities, home affordability, and more. While California markets might be missing the mark in affordability, their slow performance in 2023 means there is room for growth this year. Particularly if interest rates dip.
According to the NAR data, these are the top housing markets for 2024.
1. Toledo, OH
Most of the top housing markets for 2024 may be in California, but we’re going to the Midwest for the number one slot. Toledo, Ohio, located at the western end of Lake Erie, is known as an industrial hub. The city offers affordable housing, a diverse economy, and waterfront parks for locals to enjoy.
Toledo’s median home listing price was 51.6% lower than the national median (as of Q4 2023). This makes Toledo an attractive option for first-time buyers, investors, and anyone on a tight budget.
2. Oxnard-Thousand Oaks-Ventura, CA
Ventura County, California, is a coastline community located just northwest of Los Angeles. Known for its beautiful beaches, safe neighborhoods, and high quality of life, this area attracts those seeking a coastal lifestyle with an emphasis on outdoor activities.
With a median sales price of $831,000, this metro misses the mark on affordability. But it gets high marks in year-over-year home sale increases, which are estimated at 18%.
3. Rochester, NY
Situated on Lake Ontario in upstate New York, Rochester offers affordability, strong employment prospects, and a high quality of life. The area is recognized for its high-quality schools and healthcare facilities. You’ll also find lots of museums and outdoor recreational opportunities in this lakeside community.
With a median listing price 41.2% below the national median, Rochester is an accessible market for buyers. Even if the median price growth hits the projected 10.4%, Rochester will still be more affordable than most markets in the country.
4. San Diego-Chula Vista-Carlsbad, CA
South of Los Angeles, on the other side of Orange County, sits the San Diego metro area. This coastal region is home to stunning beaches, vibrant city life, and a pleasant climate year-round. With San Diego’s mix of urban amenities, outdoor recreation, and high standard of living this area is well-loved by professionals, families, and retirees alike.
The most expensive entry on this list, the median sales price in San Diego County currently sits at $850,000. But, with the strong local job market, driven by growth in healthcare, education, and tech sectors, the median household income in SD County is over $20,000 per year more than the national average.
5. Riverside-San Bernardino-Ontario, CA
Locally known as The Inland Empire, the Riverside-San Bernardino-Ontario metro is located just east of Los Angeles. The IE offers more affordable housing than most of Southern California, making this an appealing location for buyers who want the benefit of living in SoCal without the price tag of the coastal communities or major metro markets.
The median sale price is right around $500,000 in San Bernardino County and $580,000 in Riverside County. With remote work and hybrid more popular than ever, it’s possible to earn a Los Angeles salary with an Inland Empire cost of living. This arrangement is adding to buyer interest in 2024.
How to Prepare Your Real Estate Business for 2025
If you’ve not yet gotten your real estate license, now is a great time to do so. You can complete your state-required real estate course online and be ready to start practicing real estate just months from now.
If you already have a real estate license, here are a few ways to prepare your business for 2025 and beyond:
Focus on lead generation. The number of transactions is expected to remain low, so agents who know how to generate leads will have a competitive advantage.
Build your network. With such little inventory to go around, agents who are well-connected enough to be among the first to learn of upcoming listings will be a major asset to buyers.
Understand mortgage financing options. With higher home prices, more buyers may need creative financing. Check out our guide to mortgages for info you can use to help your buyers qualify for a home loan.
The real estate market is always changing. By watching the trends and adjusting your business accordingly, you can stay a step ahead in your market!
Updated 3/4/24