Are you wondering what makes for a “hot” real estate market? If yes, you are not alone. Real estate agents know a hot real estate market when they see it, while sellers and home buyers know it when they have actually lived through one. You go to an open house and soon find over 18 people checking out the place. The offer you make competes against 12 others. The property sells for $90,000 above the asking price, in cash, without any contingency clauses.
Has something like this ever happened to you? Note that there are many real war stories similar to this from hot real estate markets in the US, where property inventory is low while the competition is intense. While purchasing a house in a strong seller’s market may present certain added challenges, don’t worry as you can secure a place you will love.
The US real estate market has certainly regained its momentum, and things have changed since the housing market crash of 2008. As of August 2019, new home sales in the country surged to eighteen percent compared to the same period in the previous year. And that is not all; according to the most recent report by the U.S. Department of Housing and Urban Development (HUD), more than 710,000 units of single-family properties were sold in August 2019, which is a great sign for the real estate market and the economy in general. This also indicates that more families are now moving into new homes throughout the country.
There is plenty of positive news about the US real estate market these days. Mortgage rates in the US are almost at record lows. Also, property prices are up considerably in several parts of the country, especially over the last ten years. Meanwhile, delinquency rates are near an eighteen-year low, which is another good sign.
However, some housing markets in the US are on fire, with rapidly rising rental prices and home values, low unemployment rates, strong job opportunities, and steady income growth.
We can define a “hot” real estate market as one where properties are selling quickly. This is measured by fewer days on the market. Generally, hot real estate markets are persistent—hot markets often stay hot for a while, while cooler real estate markets tend to remain cool.
The real estate market in Boise has witnessed prices appreciate at historical levels. This is why real estate investing in the city is very hot at the moment. Boise has seen property demand increase in conjunction with almost every economic indicator we can consider. Although Boise may fly under the radar in some respects, there is no doubt that its housing market is sizzling. This can be seen from the prices that are up 17.7% in the last year and 32.8% over the last two years. As is the case in most growing property markets in the US, home prices in Boise, Idaho, are rising faster than wages.
It is no secret that many millennials in the country are saying goodbye to expensive cities, like Seattle, San Francisco, and Portland, etc. and moving to more economical midsize metros, such as Boise. And sellers are definitely having a field day, with listing prices 13% above city median values. A number of local tech companies in the city, such as Micron Technology, offer good job opportunities for Boise residents, as well.
It is worth mentioning that the influx of new residents in the city has driven up home demand, causing home prices to considerably increase in recent years. The real estate market in Boise has become the single biggest beneficiary of Idaho’s growing economy. Note that appreciation rates in the past year have outperformed the national average, and there is nothing that suggests they will not for the next year.
So what is attracting people to Boise? Abundant recreation activities, low crime rates, and excellent schools in the city are a huge draw for many new residents that have been priced out of many larger and high-cost metropolitan areas, such as Seattle.
San Jose, California
With a market growth forecast rate of 8.9%, San Jose is an extremely hot real estate market in the US. San Jose has managed to assert its dominance throughout the US real estate industry for the major part of a decade, which is not surprising given that it is the home of giants, like Cisco, eBay, and Adobe. San Jose is one of many Bay Area cities with increasing property values that may still have some room to grow. It is worth mentioning that an incredible 2-year 24.7% gain has helped push up property prices in the city to $1,082,600. However, experts contend that list prices have more room to increase, coming in around $150,000 below median property values. San Jose remains one of the hottest real estate markets in the most expensive state.
So, if you’re a real estate investor, real estate in the city has a proven track record of being one of the most lucrative long term investments in the US through the last 10 years. With an impressive appreciation rate of almost 10% over the period of last year and upward of 44% in the last 3 years, it’s no surprise that the median property price in San Jose is almost four times the national average.
The real estate boom in Nashville started about ten years ago, and many real estate investors in the US expect these market trends to continue this year and foreseeable future. This makes Nashville one of the hottest and most desirable housing markets in the country. Nashville is the state capital of Tennessee and is often called the “Birthplace of Rock ‘n’ Roll.” There is no denying that plenty of individuals visit this amazing city for its popular Grand Ole Opry and exciting bar scene; however, that is not all; the city also has many job opportunities.
It is no secret that the U.S. real estate market has mainly favored home sellers over the past several years due to the record-breaking low inventory as well as red-hot demand which led to extreme competition in the market and fast-increasing home prices. Housing is affordable in the city at a median price of about $252,200, and rents are reasonable at $1,499 a month.
It is worth noting that Nashville is now experiencing a booming economy due to the numerous construction projects under development and the increasing demand for housing. Because of its amazing quality of life and colorful culture, Nashville is considered by many as one of the fastest-rising real estate regions in the US.
While home prices are plummeting in Arlington, Virginia, they are heating up in Arlington, Texas. Situated between Fort Worth and Dallas, Arlington is very close to many of the region’s major attractions, such as AT&T Stadium, Globe Life Park and some of the biggest employers, like the University of Texas at Arlington and Arlington ISD.
The real estate market in Arlington has frequently been reported by various media outlets as having some of the most economical homes as well as the cost of living in the country. It is worth noting that median property values in the city reached $206,800 after climbing 21.9% over the last two years, which is great for investors.
Grand Rapids, Michigan
One of the hottest and most affordable cities in the Michigan real estate market, the housing market in Grand Rapids has been receiving a lot of investor interest and for a good reason. Note that Grand Rapids is the second largest city in the state of Michigan and the city’s metro area is the fastest-growing, according to the latest data from the Census Bureau.
Grand Rapids runs along the popular Grand River, and it also features 4 large parks with a strong school system, which is attracting a lot of folks to the area. Amazon is also opening a huge $4 million distribution center in the city because of the strong local economy and low cost of living. Once quite stagnant and dependent on just a single industry, now the Grand Rapids economy is a bustling and diverse business economy. It is worth mentioning that the metropolitan area’s large millennial population strongly indicates a significant number of prospective first-time home buyers.
Also, the area’s strong economy makes Grand Rapids a very attractive city to live and purchase a home. Despite a few local housing affordability concerns, the city’ s real estate market is still considered very affordable on the national scale as it has a median home value of more than $156,000.Grand Rapids is also one of the top five housing markets for 2019, according to Trulia. This is based on several factors, such as high job growth, low vacancy rates, and a younger adult population, and more.
As more residents in the US move away from expensive coastal cities, Midwestern and Central states in the country are now enjoying unprecedented economic prosperity.