PROVIDENCE – Real estate marketplace company Zillow recently released a report predicting that Providence would be among the top five “hottest housing markets” in 2024.
The only U.S. cities expected to have stronger housing markets than Providence are Buffalo, N.Y., predicted to be the nation’s hottest housing market in 2024, along with Cincinnati; Columbus, Ohio; and Indianapolis, according to the Zillow report.
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“These should stand out as strong in a housing market still buffeted by low inventory and relatively high mortgage rates and prices,” Zillow said in the report. “2024’s hottest markets all boast solid economic fundamentals, relatively fast-moving for-sale housing inventory, plentiful likely buyers and expectations for stable home values.”
Zillow said its list of predicted hottest markets in 2024 is based on a forecast of home value growth, recent housing market velocity (how quickly homes are sold once put up for sale), projected changes in the labor market, home construction activity and total figures for homeowner households.
While Providence’s real estate market is expected to have a strong year, overall the challenges of high interest rates and low inventory will continue throughout the country, according to Zillow.
“While mortgage rates have come down significantly in recent weeks, and projections for improved affordability and more homes for sale have become more common, the challenges that limited the U.S. housing market last year are unlikely to disappear entirely in 2024,” Zillow said in the report. “Even the fastest-growing markets of 2023 are expected to see significant slowdowns in the year to come.”
The report predicts continued high demand in conjunction with low inventory for Providence and other markets.
“It’s likely that these low-inventory markets – in which buyers had the hardest time finding a home and homes generally sold very quickly in 2023 – will continue to experience outsized demand (relative to supply) in 2024, compared to other markets,” the Zillow report stated.
This sentiment was also reflected in a recent report released by the Rhode Island Association of Realtors, stating that “pent up demand” continued to drive prices up throughout the state late last year. The median price of single-family homes sold in Rhode Island rose to $431,000 in November 2023, up from $411,450 a year prior – a 4.8% increase, according to the association. However, the association said that “with mortgage rates falling below 7% recently, and sales data showing slightly more supply, we’re seeing some optimistic signs for 2024.”
U.S. cities that rounded out the top 10 hottest markets predicted for 2024, according to Zillow, included Atlanta; Charlotte, N.C.; Cleveland; Orlando, Fla.; and Tampa, Fla.
Marc Larocque is a PBN contributing writer. Contact him at Larocque@PBN.com. You may also follow him on Twitter @LaRockObama.
