Data collected on home sales confirm that 2016 was the best year for the housing market since the financial meltdown in 2006, and it appears that we are now safely in a sustained period of recovery. As we enter 2018, the housing market doesn’t appear to be slowing down. Some housing forecasts show U.S. home prices rising 4.6% this year. Below are 10 states expected to be strong performers.
1. Nevada – Devastated by the financial crisis and resultant foreclosures in the late 2000s, Las Vegas has been experiencing an economic rebirth. According to realtor.com, the economy is expected to grow about 8.7% in 2018, which means a lot of people will be moving in and moving up. Zillow economists expect the median home value for Las Vegas to increase about 5.8% over the next 12 months. The median home price is $285K.
2. Texas – With a robust economy, low unemployment, and affordable cost of living, the Dallas-Fort Worth area will continue to bring in busloads of new residents. The median home price in North Texas is $339K, and homes sales are expected to grow by as much as 6% in 2018.
3. Florida – With its warm weather, beaches, and active outdoor living, Florida continues to be a draw for home buyers. Florida’s most popular area, Deltona-Daytona Beach-Ormond Beach, is expected to the be the third hottest housing market in the country in 2018 with sales of existing single-family homes rising 5.5%. In Deltona, the state’s hottest housing market, the median home price is $275K.
4. California – As the state’s economy continues to grow, the demand for housing will remain strong. However, with a shortage of available homes and lack of affordability, this state’s housing market is more challenging for home buyers to enter and some would-be home buyers have been eliminated altogether. Stockton, once named as one of America’s “most miserable cities” by Forbes, is going through a revitalization thanks to the tech industry. Stockton is predicted to grow its housing market by about 4.6% with the median home price an affordable $285K.
5. Utah – Corporations are flocking to many areas of this state, bringing good-paying jobs, good schools, and a good tax base. People who have grown weary of the high cost of living and congestion in Silicon Valley are moving to Salt Lake City where the median home price is $360K. In 2018, the market is predicted to grow 3.2%.
6. North Carolina – Relocation drives this state’s strong housing market. Many residents of Charlotte relocated for work while others retire there for the low cost of living. Employment in Charlotte is expected to grow about 2.5% in 2018. The median home price average is $325K, and home sales are predicted to grow 6%.
7. Colorado – Some of the highest price increases in housing of any other state over the past two years have been in Colorado. Their economy has seen a boost with the legalization of recreational marijuana, and the state has had an influx of people moving in for the marijuana. Colorado Springs has seen tremendous growth as people take advantage of its more affordable housing market where the median house price is $285K compared to Denver (70 miles away) at $511K. Homes sales in Colorado Springs are expected to grow by 3.1% in 2018.
8. Tennessee – Nashville has become THE city in this state. As the population rises, so does the competition for housing. Single-family homes in the most desired suburbs get multiple offers above asking price just hours after going on the market. The median home price in this city is right around $385,500.
9. Oklahoma – With its lower cost of living, steady jobs, and low crime, Oklahoma is an attractive option to older millennials and young families wanting to live in the suburbs. Oklahoma City has one of the strongest and affordable housing markets for 2018 where home prices average $99K, much lower than the national average and lower than the statewide median price of $116K.
10. Georgia – With generally lower taxes, land, and labor costs, Georgia, particularly Metro Atlanta, continues to draw companies and industries to the area. As people relocate to Atlanta, limited inventory and strong demand are making a competitive real estate market. Within each county, there are spots both hot and not as housing is all about location. The hottest metro areas include Smyrna, Chamblee, Cumming, and North Fulton. According to Zillow, between July 2016 and July 2017, home values rose 10%, and Redfin reports a median sales price of $285K in Atlanta.
A strengthening economy is pushing demand. Buyers are out early this year trying to get a jump into the spring market. For home sellers, rising home prices are good news, but for buyers it does add to the challenge of finding a home. This isn’t expected to ease up any time soon.
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