Hottest Real Estate Markets of the Year
2019 has been a promising year for real estate investors and homebuyers alike. Low employment rates paired with a drop in mortgage rates have fueled the housing market over the past 9 months.
As we wrap up the year and head into 2020, domestic migration out of major metropolitan areas continues to rise. So, where are all of these homeowners heading?
Hottest Markets in the US
According to USA Today, affordability has been the motivating factor for the last five years as housing prices in some markets become too high. As a new generation of homeowners enters the housing market, a shift from city-living to small-town comfort seems to be the trend. Here are a few of the hottest real estate markets of the year, so far:
Grand Rapids, Michigan
Two hours northwest of Detroit is a quiet city with plenty of parks and nightlife to keep residents happy and busy in their free time. Millennial buyers make up 48% of new purchase mortgages.
- Time on Market (Before Selling):10 days
- Median Listing Price: $178,050
- Median Household Income: $42,019
- Time on Market (Before Selling):21 days
- Median Listing Price: $238,950
- Median Household Income: $50,827
Home to Boise State University, endless amenities, and an average home value amount 14% higher than the US average, it’s no surprise that Boise is on this list. Millennial buyers make up 28% of new purchase mortgages.
- Population: 218,677
- Time on Market (Before Selling):14 days
- Median Listing Price: $289,950
- Median Household Income: $52,249
This little city, with a population less than 70,000, is known for its walkable downtown, boutiques, and restaurants. Homebuyers looking for a small town feel with a low cost of living will love Shawnee. Millennial buyers make up 43% of new purchase mortgages.
- Population: 64,444
- Time on Market (Before Selling):13 days
- Median Listing Price: $220,050
- Median Household Income: $79,048
Rochester, New York
Packed with a diverse culture, job opportunities, and exciting amenities, Rochester continues to attract young homebuyers looking for adorable living with a big city feel. Millennial buyers make up 43% of new purchase mortgages.
- Population: 210,291
- Time on Market (Before Selling):17days
- Median Listing Price: $125,050
- Median Household Income: $31,684
Most Competitive Markets
Just because the market you’re considering doesn’t top the list as one of the hottest markets of the year, doesn’t mean it’s not a competitive market to buy or sell in.
Did you know eight of the top 10 most competitive markets in America are Western cities? Buyers within these cities have higher than average credit and the ability to put down larger payments. If you’re entering the housing market in a non-competitive area, there are still a few tips you can pick up from home buyers and sellers in competitive areas.
According to CNBC, buyers in competitive markets:
Shop for the right lender for them. A lower rate with the wrong strategy can cost you in the end.
Get approved, rather than just pre-qualified. When it comes time to make an offer, there may be multiple offers on the home already. An upfront approval will show you are financially capable of purchasing the home and enhance your negotiating power.
Have good or excellent credit. It’s important to stay on top of your credit and make your payments on time. However, there are loan programs that are available to homebuyers with a lower credit score.
Are able to put down a sizable down payment. Some qualifying buyers may be able to put down as little as 3.5%. But keep in mind, down payments less than 20% will require Mortgage Insurance.
So, which cities top the list as the most competitive markets in America?
- Buyers Who Shopped for Mortgage Lender: 67%
- Buyers with Good or Excellent Credit: 56%
- Average down payment: 16%
Los Angeles, CA
- Buyers Who Shopped for Mortgage Lender: 64%
- Buyers with Good or Excellent Credit: 55%
- Average down payment: 17%
- Buyers Who Shopped for Mortgage Lender: 65%
- Buyers with Good or Excellent Credit: 57%
- Average down payment: 15%
No matter what the housing market looks like near you, PRM can guide you into the best home loan for your situation. Contact a Mortgage Advisor today to learn more.