Top 10 housing markets heading into the next decade
While the housing market has been hamstrung by a lack of inventory, high prices for aspiring buyers and economic uncertainty, some cities will emerge as clear winners for those looking to own a home over the next three to five years.
A study by the National Association of Realtors identified the top 10 markets where conditions will be favorable for prospective homebuyers, based on factors including affordability for new residents, job growth and home price appreciation.
“Some markets are clearly positioned for exceptional longer-term performance due to their relative housing affordability combined with solid local economic expansion,” NAR Chief Economist Lawrence Yun said in a statement. “Drawing new residents from other states will also further stimulate housing demand in these markets, but this will create upward price pressures as well, especially if demand is not met by increasing supply.”
NAR noted that these markets will become more attractive due to strong job growth – as payroll employment rises faster than the national average – and a net inflow of new residents.
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Here’s a look at the NAR’s hottest markets and where home prices currently stand, according to Zillow:
Charleston, South Carolina
Median home value: $319,000.
Median price of homes currently listed: $376,600.
Median price of a home sold: $303,700.
Charlotte, North Carolina
Median home value: $232,500.
Median price of homes currently listed: $295,000.
Median price of a home sold: $237,800.
Colorado Springs, Colorado
Median home value: $302,900.
Median price of homes currently listed: $335,000.
Median price of a home sold: $301,800.
Columbus, Ohio
Median home value: $159,700.
Median price of homes currently listed: $184,900.
Median price of a home sold: $167,400.
Dallas-Fort Worth, Texas
Median home value: $212,700.
Median price of homes currently listed: $385,000.
Median price of a home sold: N/A.
Fort Collins, Colorado
Median home value: $393,500.
Median price of homes currently listed: $410,000.
Median price of a home sold: $387,200.
Las Vegas, Nevada
Median home value: $274,400.
Median price of homes currently listed: $299,999.
Median price of a home sold: $271,700.
Ogden, Utah
Median home value: $231,600.
Median price of homes currently listed: $225,000.
Median price of a home sold: N/A.
Raleigh-Durham-Chapel Hill, North Carolina
Median home value: $281,800.
Median price of homes currently listed: $335,000.
Median price of a home sold: $258,800.
Tampa-St. Petersburg, Florida
Median home value: $224,900.
Median price of homes currently listed: $315,000.
Median price of a home sold: $236,500.
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As previously reported by FOX Business, 2020 is expected to be another tough year for both homebuyers and sellers. The total number of available homes for sale could hit a record-low, according to a forecast from Realtor.com. Inventory is expected to remain constricted in the entry-level market, continuing pain for young aspiring homeowners, but buoying prices for sellers in that sector.
Overall, Realtor.com expects home prices to rise just 0.8 percent across the United States next year, but prices are expected to decline in 25 percent of the 100 largest metro areas.