Everyone likes to predict things but determining what is going to happen in real estate is always challenging. Realtor.com recently gave it a try and predicted that the following markets in the US should experience robust growth this year.
#1 Las Vegas
Sin City was hit hard by the real estate crash, but the economy here is expected to grow by nearly 9% in 2018. This is compared with 6.4% for the other top 100 markets. This means there will be a lot of people moving in and looking for a home. It is expected the median sales price in Las Vegas will be $285,000.
A major factor in the growth of Las Vegas is the relatively low cost of living and its proximity to California. Many people are tired of the high cost of living on the West Coast and are moving to Las Vegas. With many new residents coming into town and the return of previous buyers who lost their homes in foreclosure, homes that are properly priced in nice neighborhoods are moving fast.
#2 Dallas TX
This oil-rich tech town is booming as many companies are moving here from higher tax states, expanding and opening up in the Texas market. Companies are drawn to Texas by the very low taxes, including no corporate income tax, and the low cost of living.
For example, Toyota recently moved its HQ to Plano near Dallas, and asked 4,000 employees from other parts of the country to come as well. The median home sale price is $339,000 and sales growth is expected at 6% this year. Housing experts here say most of these houses that are sold are newly built and builders cannot keep pace. Others say that some houses in the $250,000 to $350,000 may experience a drop in price this year as they may have become overpriced.
#3 Deltona FL
Deltona’s great location, between Orlando and Daytona Beach, is a major attraction. In fact, many people work in Orlando and drive home to Deltona, where prices are lower. The median home price inside the city limits is only $159,000, while in the entire Deltona metro area it is $275,000. The city was hit hard by the last recession, but it has made it most of the way back. The area economy is expected to grow by 8% this year and employment will increase by nearly 3%. Real estate investors helped to boost the market when prices dropped in 2009. Now many of the rentals they refurbished are hitting the market.
#4 Stockton CA
Stockton has a lot of crime, so it does not have the best reputation. But it is becoming more popular because of the low cost of living. It is possible to buy a home in Stockton for under $300,000 which is less than a quarter of what you pay in San Francisco for the same property. Many people in the Bay Area who were priced out of the market move to Stockton and discover they can buy a fixer upper for $250,000.
Some say that Stockton has seen a major revitalization in the past five years; major historic buildings are being brought back to live, and new neighborhoods are being built. The area has been aided by its proximity to the Lodi vineyards.
#5 Lakeland FL
Like Deltona, the major attraction of Lakeland is its excellent location. It is only 40 minutes east of Tampa and an hour from Orlando to the south. It makes it a desirable place to live for commuters who want to save money.
The median price for homes here is in the low $200,000s and sales growth is predicted at 3% for the next year. Inside city limits, it is possible to find a home for under $200,000. The county also has several down payment assistance programs for qualified buyers. This is giving the local real estate market a lift.
#6 Salt Lake City UT
Salt Lake City has become hot in the past three years with a median home price of $360,000 and predicted sales growth of 4.6%. Buyers inside city limits are seeing offers on their homes 25% above asking price. Many people are tired of high taxes and high cost of living, and also long commutes. So they are relocating to downtown Salt Lake City.
#7 Charlotte NC
Just like Dallas, much of the boom in the real estate market here is thanks to many people moving in from out of state. Many people move in to relocate for work. Charlotte is now a major financial hub for the south. Others are moving in to retire and find attraction in the low cost of living.
The median home price here is $325,000 and sales growth is predicted at 6% for the year.