As mortgage rates fall, home buying should pick up again. In some surprising markets, homebuyers are already making offers at a record pace.
Realtor.com just released its list of hottest zip codes in 2024. This includes areas like Carmel, Indiana (27 on the list), located outside of Indianapolis.
“A typical four-bedroom apartment is $460,000, so there’s been a big shift,” said Chris Dykes, who runs the Carmel office of Carpenter Realtor. “This is a great market if you own a home. If you don’t, it’s a very difficult market.”
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Danielle Hale, chief economist at Realtor.com, says a market is considered “hot” when supply can barely keep up with the number of potential homebuyers.
“A lot of people are looking at these listings,” Hale said. “And we’re also seeing that the homes don’t stay on the market very long.”
The Northeast and Midwest dominate the list of this year’s hottest zip codes. These 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 see the full list.
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At the top of the list is Gahanna, a small town of about 35,000 residents northeast of Columbus, Ohio.
“In Gahanna, the median home price is well below the national average and also below the median for the greater Columbus area,” Hale said. “It’s a good place for home buyers to get their footing and see really good real estate values.”
Hale added that many of the popular zip code areas on the list are located just outside the urban cores of major metropolitan areas, offering affordable prices without sacrificing proximity.
According to Realtor.com, prices in the South and West of the U.S. are less affordable “due to significant price increases during the pandemic,” the report said. Inventory, especially in the South, is increasing, but buyer demand is cooling.
When shopping in a “hot market,” Hale recommends buyers get pre-approved for a mortgage before starting a home search. She recommends setting a price you’re comfortable with so you can act quickly when you see a home that’s right for you.
