With 2018 beginning to wind down, here are some of the hottest residential markets for both buyers and sellers so far this year.
New Report Offers Insight
While the U.S. housing market has been booming for some time, there is evidence it could be leveling out. Although inventory shortages remain common across the nation, some regions have observed slowing sales and a decline in mortgage applications. In many places, a short supply of existing homes and a drop-off in new construction have sent housing prices so high that prospective buyers are sitting on the sidelines instead of engaging in costly bidding wars.
That said, markets remain hot in specific parts of the country. In its most recent report detailing 2018’s most productive housing markets, Realtor.com provided some interesting insight into which cities are seeing the most buyer activity. From Texas to Indiana and Colorado to Michigan, homes continue to sell in cities where economic conditions are especially good.
The Big Takeaways
Realtor.com relied on specific key indicators to determine which markets to include in its Top 20 list, including the median age of inventory, increasing prices and limited supply. Ultimately, the list unveiled some key factors which appear to be fueling the hottest markets:
Affordability: In many of the hottest markets, buyers are flocking toward good deals. According to Realtor.com, eight of the top 20 hottest housing markets had listing prices that were below the national median of $299,000. Affordability also appeared to be a common characteristic of the biggest movers on the list: Philadelphia, Cleveland, Indianapolis, Phoenix and Orlando.
Employment: As Jeff Bezos shortens his list of potential Amazon HQ2 cities, housing markets have responded. In its most recent list of the highest-performing markets, Realtor.com includes Dallas, Boston and Columbus, all of which are under consideration for the online retailer and tech company’s proposed new corporate headquarters.
Economic conditions were also one of the big reasons Midland, Texas continued its four-month streak as the country’s hottest housing market. Driven by a robust oil economy, the city’s median age of housing inventory currently sits at only 29 days, with properties receiving more than twice the listing views of the typical home despite listing prices that are well above national averages.
Supply: Inventory also appeared to be one of the driving factors behind home sales, with many of the top markets boasting a healthy supply of homes. Combined with other key factors, this helped homes move 17 to 30 days faster than inventories in the rest of the nation.
While some of the cities on Realtor.com’s list won’t shock anyone, there are a few cities that don’t typically register on people’s radar. For buyers who are able to move across markets and are looking for reasonably priced homes to retire or raise families, this latest list provides several locations which may be worth considering.
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