Take a look at realtor.com’s latest list of “Hottest Markets” from March to April 2019. Also notice how many ranking slots each city jumped up or down from one month to the next:
- Columbus +8
- Boston +11***
- Midland -2
- Sacramento +2
- Stockton +5
- Colorado Springs -3
- Odessa +8
- Lafayette +16***
- San Francisco -4
- Modesto +2
- Rochester -3
- Santa Cruz +7
- Chico -11***
- Spokane -10***
- Milwaukee +6
- Akron +9
- Ann Arbor +37***
- Manchester +25***
- Canton -1
- Vallejo +2
***Denotes a double digit ranking changes either up or down.
The state of California continues to hold 7 of the top 20 “hottest” spots BUT the state has also been the most affected by the industry’s slowdown.
Veros Real Estate Solutions, acknowledging this “significant softening,” projects home value appreciation to drop “well under 5%” in Los Angeles and San Diego and to hit just above 5% in the Bay Area. All of these projected value appreciation readings are much below the double-digit readings these markets had in the recent past.
Cities in the Midwest are the beneficiaries of this industry slowdown. According to Danielle Hale, chief economist for realtor.com, said, “Historically, there wasn‘t much demand in these (Midwestern) areas. Now that home prices are higher across the board, people are looking to those (wallet friendly) areas.”
Take Columbus, the unexpected hot spot in the country. Hale said, “Columbus is super affordable with a median home price of $249,000 compared to the national listing price average of $300,000. (Columbus) attracts a lot of younger buyers and the city is revitalized.”
Lee Ritchee of RE/MAX Metro Plus in Columbus told Inman News, “A good 80% of my business is working with first-time buyers…they’re out in full force. We (also) get calls from buyers in New York, California and Washington DC. They know that (Columbus) is affordable…but it’s also an easier way of life and, for many, a better quality of life. It’s the best small town.”
