Zillow Forecasts Buffalo as Top 2024 Housing Market

Buffalo, New York is projected to emerge as the most fiercely competitive housing market among 50 major cities this year, as forecasted by Zillow. The city earned this distinction due to a blend of factors including affordability, the correlation between new jobs and new homes, and the expected stability of home values.

With average home values around $248,445 and houses typically spending about two weeks on the market, Buffalo stands out in terms of expected market dynamics, even as Zillow anticipates a slight 0.2% decrease in home values for the city this year.

Zillow’s ranking of the top markets after Buffalo includes cities like Cincinnati, Columbus, Indianapolis, Providence, Atlanta, Charlotte, Cleveland, Orlando, and Tampa, showcasing a diverse mix across the country. Providence currently holds the highest typical home value among these cities at $455,609, contrasting with Cleveland’s lowest at $215,597, while the national average typical home value stands at $347,415.

Factors such as rapid home sales in Cincinnati and anticipated growth in owner-occupied households in Columbus played pivotal roles in securing their positions in the rankings, reflecting diverse market dynamics. Zillow’s evaluation incorporated housing market velocity, construction activity, labor market data, and more to form its projections.

Zillow’s Economic Research Data Scientist, Anushna Prakash, expressed cautious optimism for the housing market in 2024, highlighting the importance of affordable prices and robust employment opportunities in shaping healthier housing markets, aiming to avoid the drastic price surges seen in the pandemic’s early stages and the swift mortgage rate rises in recent times.

As of the first week of January, Freddie Mac reported a 30-year fixed mortgage rate averaging 6.62%, signaling ongoing fluctuations in mortgage rates. Additionally, recent data from the National Association of Realtors and the Census Bureau in November highlighted annual rates of existing and new home sales in the United States, while Redfin’s January report detailed approximately 789,500 active home listings in the month ending December 31st.