With the real estate market as hot as it is, people are more curious about market trends than ever. The alarming real estate price inflation and the severe lack of available housing have raised concerns about affordability. Many people are left wondering about what they can afford and what they cannot.
Experts also warn buyers to beware of neighborhoods that may appear affordable but may not be the best places to move to. If something seems too good to be true, it probably is.
In today's competitive real estate market, prospective buyers must analyze affordability and consider the long-term sustainability of their investments. It's also important to match the budget with how the neighborhood is expected to grow and develop.
To help with this, we have compiled key statistics and predictions by highly experienced and reputable real estate experts about market tiers by state and city. These insights provide a clear overview of the real estate trends for this year. Let's delve into these informative findings!
San Diego
California: Home to several high-value markets, with places like San Diego and Oxnard showing robust activity. San Diego's median home list average predicted price in 2024 is close to $995,000, with a forecasted 5.4% price increase in 2024.
Source: Realtor
Tampa
Florida: Florida's real estate market has seen substantial growth. Tampa, for example, has had significant appreciation rates over the last decade, with the state overall showing a 77.01% appreciation over a five-year span (starting in the first quarter of 2018 and finishing in the first quarter of 2023).
Source: Norada Real Estate Investments.
Cities in California and Florida have always been in some of the strongest and most desirable real estate markets in the United States. People often look for luxury properties in Florida if they want to purchase a waterfront property. Those searching for a luxury California property often search for prime locations, scenic views, top schools, and affluent lifestyles.
Some areas in these states could see a decline shortly. California is home to 6 of the 10 U.S. counties most at risk of home-price declines shortly.
Source: Daily News
Massachusetts: Cities like Springfield and Worcester have more moderate home prices, with median list prices towards the end of 2023 of $350,000 and $475,000, respectively. These areas are attractive alternatives to the much pricier Boston market, offering affordable options for potential homebuyers.
Massachusetts has more options for mid-value markets and is an attractive place to live.
Rochester
Ohio: Toledo is an example of a market that remains balanced. Home prices are significantly lower than the national median, making it attractive for new buyers and investors.
New York: Rochester, with a lower median home list price of $239,000, is an emerging market due to its affordability and scenic location. This presents a promising opportunity for profit in a growing market, which should inspire optimism in potential investors.
These two markets provide affordable housing options for both renters and buyers, drawing many people to these vibrant locations. However, the crime rate for these locations is significantly higher than the national average, which can stunt the growth of these markets.
Source: Crime Grade
Median home prices as of June 2024.
Source: Redfin
Springfield, Illinois:
Median Home Price: Approximately $160,000 as of June 2024.
Reasons for Low Prices: Affordable housing, a lower cost of living, a stable yet non-booming local economy, and slow population growth.
Buffalo, New York:
Median Home Price: Approximately $179,000 as of June 2024.
Reasons for Low Prices: Economic challenges, slower job growth, decline of manufacturing, limited job opportunities, and harsh winter climate.
Detroit, Michigan:
Median Home Price: Approximately $79,000 as of June 2024.
Reasons for Low Prices include long-term economic struggles, population decline, bankruptcy in 2013, auto industry collapse, high unemployment rates, and a struggling public school system.
All of these cities also have a much higher crime rate than the national average.
We decided to have some fun ourselves and add predictions to emerging markets for lesser-known cities whose growth potential can excite investors.
We have compiled these predictions on our own without statistics and based on factors such as recreation, remote work appeal, tourism, and amenities. While these fun factors are not based on statistics, they offer some insight as to how appealing a smaller city can be for future buyers.
Eau Claire, Wisconsin
Why Eau Claire is Emerging: Eau Claire's growth is fueled by a robust local economy driven by the healthcare, education, and manufacturing sectors. The town's vibrant arts scene and outdoor recreational opportunities also contribute to its appeal, leading to rising home values as more people seek to relocate to smaller cities with a high quality of life.
Brattleboro, Vermont
Why Brattleboro is Emerging: Brattleboro's charm lies in its downtown area, artistic community, and proximity to outdoor activities in the Green Mountains. Its appeal to remote workers and people seeking a quieter yet culturally rich environment has significantly increased housing demand.
Asheville, North Carolina
Why Asheville is Emerging: Asheville's vibrant arts scene, craft breweries, and scenic beauty make it a unique destination. The town's economy benefits from a strong tourism sector and an influx of remote workers looking for a mix of culture and nature, which has significantly boosted its real estate market.
Bend, Oregon
Why Bend is Emerging: Bend's rapid growth is fueled by its reputation as a hub for outdoor enthusiasts and attractive lifestyle amenities. The city has become a magnet for people seeking a blend of work-life balance, particularly with the rise of remote work.
The real estate market is always evolving, offering great opportunities for homebuyers and investors in established and emerging markets. Whether you're interested in high-value markets or even up-and-coming cities, there's something for everyone. It's important to keep up with market trends and look for investment and homeownership opportunities, as we all know that the real estate scene is always changing. Looking ahead, technological advancements and changing societal needs are expected to continue shaping the future of real estate.