In 2024, there may be some respite for homebuyers as mortgage rates are anticipated to continue declining and sales volumes to rise to 5.3 million over the next two years. Nevertheless, it will remain difficult to find an affordable home due to high home prices and a small supply.

The top 100 metro areas for 2024 were revealed by Realtor.com, and they include Southern California markets like Los Angeles and San Diego, which are anticipated to improve after 2023’s weak sales, as well as affordable markets in the Northeast and Midwest like Toledo, Ohio, and Rochester, New York.

“Now that we’re seeing the beginning of an affordability turnaround, home buyers are still looking for markets where they can capitalize on lower prices,” Realtor.com Chief Economist Danielle Hale said. “Even in some of the more expensive markets, we’ll see double-digit sales growth as sales start to rebound from their historic lows, helped by mortgage rates, which are expected to finally relent.”

By comparing and shopping around, buyers can find the best mortgage rates. You can choose your loan term, compare rates, and get preapproved with several lenders at once by going to an online marketplace like Credible.

The top 5 most affordable housing markets are listed here.

These top five midwestern and northeastern metro areas might be a good place to start your house search if cost is your main consideration. Compared to larger urban centers, these cities offer more affordable housing options, which increases the accessibility of homeownership.

Additionally, the top markets in the Northeast and Midwest also show some degree of resilience against the effects of rising mortgage rates, primarily because a larger percentage of homeowners in these regions live in properties that are mortgage-free. Together with a wide range of cultural attractions, leisure activities, and educational institutions, these cities offer a high standard of living.

Here’s the ranking for them:

1 Toledo, Ohio

First-time homebuyers found Toledo appealing because, as of October 2023, the median home listing price there was 51.6% less than the national median home price.

2 Rochester, New York

Its median listing price as of October 2023 was 41.2% less than the national median. The area is a great option for first-time buyers because it has an affordable housing market with a wide range of housing options.

3 Springfield, Massachusetts

As of October 2023, Springfield’s median list price was 56% less than the Boston metro area’s median listing price and 13.3% less than the national median. In addition, Springfield has a thriving arts and culture scene, lots of parks and outdoor activities, and a strong sense of community.

4 Worcester, Massachusetts/Connecticut

Worcester offers excellent deals when compared to the cost of homes in nearby Boston, despite being 14.7% more expensive than the national median.

5 Grand Rapids-Kentwood, Michigan

The metro’s median listing price as of October 2023 was 8.2% lower than the median price across the country. Grand Rapids has a diversified and expanding economy with opportunities in technology, healthcare, and manufacturing.

It can be beneficial to compare mortgage rates if you’re in the market to purchase a house. To compare offers from several lenders without having your credit score impacted, visit Credible.

Home sales are increasing in California

In certain Californian cities, house sales are expected to increase following a mediocre year. The top five metropolises in California are Los Angeles, Oxnard, Riverside, San Diego, and Bakersfield. In contrast to other Californian metros in the largest 100 list that are predicted to see average declines in sales of 4.1%, these five metros are predicted to see average growth in sales of 13.1% in 2024.

Redesigned loan limitations may increase home sales in these metro areas. According to Realtor.com, FHA loans—which are intended to support minority or first-time homebuyers—accounted for 15.8% of all mortgaged sales in these top markets between January and August 2023, suggesting that they had a significant impact during that time. The new conforming loan limits set by the Federal Housing Finance Agency (FHFA) for conventional loans backed by Fannie Mae and Freddie Mac in 2024 will be $766,550, an increase of $40,350 over 2023.

Homebuyers may use the 150% loan limit for high-cost areas, which is higher than the typical loan limit, provided that 115% of the local median home value is greater than $766,550. This raises the new cap to $1,149,825 for high-cost areas.

“While greater mortgage usage may make these markets more sensitive to rising interest rates, the utilization of government-backed mortgage products could help many buyers safely enter the markets with a lower down payment and perhaps a more favorable mortgage rate, offering a compelling avenue to secure homes in these competitive markets,” Realtor.com said.

If you want to refinance your mortgage to take advantage of the current rates, or if you’re ready to shop around for a better rate on a new mortgage, you might want to check out an online marketplace such as Credible, where you can compare rates and get preapproved from several lenders simultaneously.