2019 is promising to be another banner year in the housing market for sellers across the country. While that’s good news for those thinking about putting their home up for sale, it’s turning out to be an even better year for buyers.
In fact, just this month Bloomberg declared, “For the first time in years, the U.S. is entering its key spring housing-hunting season with buyers holding the upper hand.” And it looks like the momentum for house-hunters will continue into the summer as new home construction and inventory grows.
As usual, growth spurts in the housing sector aren’t uniform. Some towns and cities are doing better than others. Some are doing a lot better. Here are the top 15 hottest housing markets in 2019.
Any list of the hottest real estate markets in the country has to include San Jose this year. California home sales shot back with a vengeance in February after hitting one of their lowest levels in a decade. In fact, across the state the monthly growth in sales was the highest since January 2011.
San Jose experienced some of the country’s highest year-over-year home value appreciation in 2018 (11.23%). It looks like it won’t be much different this year. They are expected to rise by a whopping 19% this year. The reason the market is so strong. Jobs. With one of the world’s strongest tech economies, the region continues to hire and hire.
Nevada’s largest city was red hot last year when it came to home sales. It was also the only metro area with double-digit year-over-year price gains in December. Prices have stabilized somewhat as more inventory enters the market.
The median house price in the area was up by about 13.8% in January from the same time period the year before. Homes are set to appreciate by just over 7% this year, and analysts predict the Las Vegas housing market is likely to stay strong into 2020 and beyond.
This is not only one of the most affordable big city areas in the U.S., its housing market is also one of the hottest in the country right now. The average home value in the area is just under 238,000 and its home value increased by 11.17% last year. It’s expected to have year-over-year growth of about 8.67% in 2019.
But as one of the country’s most affordable metropolitan areas, it’s also susceptible to rising interest rates. Right now, though, it doesn’t show any signs of cooling.
The home of CNN and Coca Cola was booming last year. And it looks like the boom is continuing in 2019. Last year, it saw year-over-year home values increase by almost 13%. While it’s not expected to do the same this year (forecasts have home values rising by about 7.62% in 2019), some analysts are predicting the region will outpace the national average in home price gains.
The city has also been a seller’s market for years, and there’s just not enough supply to meet demand in a city that has attracted some of the largest corporations in the country. That seems to be changing this year with new home construction.
Charlotte, North Carolina
This city has one of the lowest median home values in the country relative to other cities its size at $203,900. The relatively low home prices — and one of the highest qualities of life — are ensuring the area’s housing market continues to shine.
It rose by more than 10% last year. A tight supply of homes will keep home values on the rise, but not quite as much this year. Home values are forecast to go up by another 4.53% in 2019.
This city offers all the advantages of Midwestern living — a great quality of life, friendly people and Hoosier pride. Combine those with a booming jobs sector and you’ve got a red hot housing market. Home values climbed year-over-year by 12.69% in 2018.
The rising home values are projected at a slightly slower pace this year (5.76% year-over-year forecast). Despite the rising home values, Indianapolis still remains one of the easiest markets to enter with average home values at just over $160,000.
Salt Lake City, Utah
Utah’s economy is in a growth spurt. And Salt Lake real estate is the big beneficiary. Home values grew by 15.1% year-over-year in 2018. (They have climbed 80% since 2005!) The growth isn’t expected to be near 2018 levels this year, but demand for housing in this limited-supply market will continue with growth predicted at 4.4%.
This southern city’s housing boom in recent years can be partially attributed to investors taking advantage of some very affordable real estate. The average home value in the city is just $138,000. That took a spike in 2018 as year-over-year home values rose by 10.22%.
Supply appears to have caught up with demand in 2019 and it just may be the perfect time for buyers to enter this market. The year-over-year growth forecast in 2019 is under 1%.
Tampa home values grew by about 10% from 2017 to 2018. Still, the average home value in the city is still a very affordable $211,000. It’s a secure investment as home values are expected to continue this year and into the foreseeable future. The year-over-year forecast is 7.08% in 2019.
What’s continuing to push home values up? Jobs, jobs and Jobs. The city’s economy is thriving. And that’s bringing in more and more workers every year. Its unemployment rate was just 3.4% in January 2019.
Orlando saw a 9.72% year-over-year growth rate last year. This year, it’s expected to be just under 6%. One of the driving factors behind the strong housing sector in this city is the fact it is consistently rated one of the best cities to live in the U.S. That’s bringing in new residents. In fact, it’s bringing in a lot of new residents — at a rate of 7.2% a year. That’s twice the national average.
Florida’s biggest city continues to get bigger. This is the seventh largest real estate market in the country and is home to about half a million people. And as it grows, so does its real estate market. Home prices are predicted to grow 5% in 2019, up to $266,586 according to Realtor.com.
Boston is one of the most vibrant cities in the eastern U.S. and that’s created one of the most vibrant and dynamic housing markets. The median home value in the city is $600,000. That went up 5.7% last year. The growth will not be quite as big this year, but it’s still strong at 4.8%. Inventory is increasing, but with high demand from buyers, this is a market favoring sellers right now.
Grand Rapids, Michigan
Boston may have some “wicked smart” people with all its universities and colleges. But Grand Rapids is one sharp town, too. Forbes magazine considers it among its top five smartest cities in America.
It’s also a city for smart real estate investors. The median home value in Grand Rapids is 159,700. It saw a year-over-year rise from 2017 to 2018 of about 12.5%. This year, it’s expected to go up by another 6.5%
El Paso, Texas
It doesn’t take a fortune to enter the housing market in El Paso. The median home value there is about $128,000. Home values increased year-over-year between 2017 and 2018 by about 5.5%. The forecast is more modest for 2019. Home values are predicted to continue to rise by just over 3%.
The housing sector in Arizona’s most populous city is about as hot as its temperature in the summer. Home values went up by about 7.5% from 2017 to 2018. Analysts looking at the market this year are expecting another rise, this time by about 5.5%.
Don’t expect this market to slow down anytime soon. The state’s population is booming along with its economy. Phoenix had the second-largest percentage job growth in the U.S. last year. That’s good news for sellers and buyers, as the area attracts more high-paid workers.