by Rafael Pena
January 9, 2024
Atlanta grabbed the sixth spot in Zillow’s top 10 hottest housing markets for 2024.
Atlanta has started 2024 by securing the sixth spot in Zillow’s top 10 hottest housing markets for 2024.
The ranking is determined based on typical rent costs, mortgage payments with a 5% down payment, and the typical home value in the area, emphasizing affordability as a driving force for market heat. Buffalo, N.Y., and Cincinnati and Columbus, Ohio, claimed the top three spots in Zillow’s ranking, according to WSBTV.
Anushna Prakash, a data scientist for Zillow Economic Research, highlighted the importance of affordable home prices and strong employment in fostering a healthy housing market. “I’m cautiously optimistic that the housing market will get back on stable footing in 2024 —we shouldn’t see the massive price spikes of the early pandemic or fast-rising mortgage rates of recent years.”
As of now, the average mortgage rate across the United States is 6.62% for a 30-year fixed-rate mortgage, according to Freddie Mac. This is a slight increase from the previous week but still relatively low compared to the rates in October 2023. Freddie Mac, a federally-backed mortgage company, reported that rates last year peaked at 7.79%, the highest since rates surpassed 8% in 2000.
Sam Khater, chief economist at Freddie Mac, suggested that despite the recent sideways movement in rates, they are expected to drift downward throughout the year.
“Given the expectation of rate cuts this year from the Federal Reserve, as well as receding inflationary pressures, we expect mortgage rates will continue to drift downward as the year unfolds. While lower mortgage rates are welcome news, potential homebuyers are still dealing with the dual challenges of low inventory and high home prices that continue to rise,” Khater said.
Amidst market fluctuations, Redfin noted a significant decline in monthly payments for homebuyers, marking the lowest levels in approximately a year. The median U.S. mortgage payment stood at $2,361 for the four weeks ending Dec. 31, a decrease of $372 from the record high observed in October.
Despite the nationwide trend reflecting a 10% surge in new listings coupled with a 3% reduction in pending sales, Redfin’s data specific to the Atlanta metro area paints a distinct picture. New listings of homes for sale witnessed an 11.5% decrease, while pending sales experienced a 10% decline, challenging the nationwide pattern.
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