Realtor.com predicts the number of overall home sales to decrease by 2%, after years of steady climbs. Their latest report, released on Wednesday, pointed out that some markets will continue to flourish despite the anticipated slowdown in the real estate market. It predicts the number of overall home sales to decrease by 2 percent after a steady rise for several years. Home prices, on the other hand, will rise by a mere 2.2 percent on account of rising mortgage interest rates and tax changes pricing more buyers out of the market, the report stated.
Despite this kind of deceleration, the report indicated that strong local economies and affordability are the main reasons for the increased influx of new residents in some of the metros. "The diversity of these top markets suggests that real estate can thrive anywhere there is a strong local economy," said Danielle Hale, Chief Economist of realtor.com.
Lakeland Florida topped the list with a median list price of $224,950. The sales growth is at 5 percent while price growth is projected at 7.4 percent. Lesser commute time to larger cities and cheaper home prices compared to Tampa's median $261,362 or Orlando's $299,950, makes it a very feasible option for many. Increased number of constructions is another important feature of Lakeland, the report indicated.
Grand Rapids, Michigan secured the second spot on the list at a median list price of $278,750, predicted sales growth at 4 percent and price growth at 8.2 percent. The city's economy is all set for continued growth, attracting new residents. The city's low cost of living and affordable housing have attracted lots of companies looking to relocate or expand, making it a diverse employer base for many seeking job opportunities.
El Paso, Texas followed closely with a median list price: $175,050, predicted sales growth and price growth at 7.9 percent and 2.5 percent respectively. This steady influx of buyers looking for a place to live has caused a construction boom in El Paso, with a bunch of new subdivisions containing up to 150 single-family homes, according to the report.
Chattanooga, Tennessee recorded a median list price of $269,950, predicted sales growth: 5.2 percent and predicted price growth at 4.3 percent in fourth place. Flipped homes in this area are popular among millennials.
The median price list in Phoenix, Arizona featured was at $329,975. The metro predicted sales growth of 3.6 percent and price growth of 5.6 percent. The report indicated that retirees and buyers fleeing ultrahigh-priced parts of the country are moving to Phoenix for its reasonably priced cribs.
Other metros to have featured in the list included Bridgeport, Connecticut; Las Vegas, Nevada; Boise City, Idaho; Miami, Florida; and Boston, Massachusets.