With mortgage rates on a downward slope, homebuying is expected to rebound. In some surprising markets, homebuyers are already making offers at record speed.
Realtor.com just released its list of the hottest zip codes in 2024. They include areas like Carmel, Indiana (27 on the list), located outside Indianapolis.
"A typical 4-bedroom is going to be $460,000, so there's been a big shift," said Chris Dykes, who manages Carpenter Realtor's Carmel office. "This is a great market if you own a home. It's a very tough market if you don't."
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Realtor.com chief economist Danielle Hale says a market is considered "hot" when supply struggles to keep up with the number of potential homebuyers.
"Lots of eyeballs checking out these listings," Hale said. "And we also see that the homes do not stay on the market for very long."
The Northeast and Midwest dominate this year's list of the hottest zip codes. They include:
10. Macungie, PA (zip code 18062)
9. Highland, IN (zip code 46322)
8. Westfield, MA (zip code 01085)
7. Leominster, MA (zip code 01453)
6. Mount Laurel, NJ (zip code 08054)
5. Rochester, NY (zip code 14609)
4. Basking Ridge, NJ (zip code 07920)
3. Salem, MA (zip code 01970)
2. Ballwin, MO (zip code 63021)
1. Gahanna, OH (zip code 43230)
Click here to view the full list.
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Topping the list is Gahanna, a small town of about 35,000 people, located just northeast of Columbus, Ohio.
"In Gahanna, the median home price is well below the national average and also below the median for the Columbus metro area," Hale said. "It is a good place for homebuyers to get their foot in the door and really see some good real estate value."
Hale added that many of the hot zip codes in the list fall just outside the urban core of large metro areas, offering affordability without sacrificing proximity.
According to Realtor.com, prices in the Southern and Western regions of the U.S. are less affordable "due to significant price growth during the pandemic," the report said. Inventory, particularly in the South, is picking up but buyer demand is cooling off.
When shopping in a "hot market", Hale suggests buyers get pre-approved for a mortgage before they start looking for a house. She says set a price point you're comfortable with so you can move quickly when you see a home that's the right fit for you.
