Some Smaller Metro Prices Are Skyrocketing

Yes, 70% of the 200 largest metros are seeing home price growth slow BUT NO, not all of them. Home price growth is happening in metros that have experienced natural disasters such as last fall’s Camp Fire in Paradise CA, metros that are smaller and cheaper than the most expensive, those that are still recovering from the Great Recession and still have room for prices to increase, and metros seeing an increase in new residents due to increased employment opportunities.

Here are Realtor.com’s 10 Skyrocketing Metros:

1. Chico CA – $330,000 – +14.7%
   1. Chico is close to Paradise CA, devastated by the Camp Fire last fall.
   2. Many homes are getting multiple offers, some with waived contingencies, and selling for between 2%-5% above listing prices.
   3. Hottest homes go pending in 8 days.
2. Birmingham AL – $219,000 – +10.8%
3. Spokane WA – $299,100 – +15.4%
   1. Spokane is often called “the other hot market in WA.”
   2. Median age of 37.
4. Greensboro NC – $220,000 – +14.6%
   1. Greensboro is one-hour away from the Research Triangle of Raleigh Durham.
   2. Considered the most improved zip code (27405) in 2018 by Realtor.com.
5. Columbia SC – $232,000 – +16.5%
   1. Population growth in 2018 was +31% higher than the national population rate.
6. South Bend IN – $150,000 – +15.4%
   1. The dynamic tech hub of Elkhart IN is one=hour away.
   2. The increasing shortage of inventory is good for sellers.
7. Trenton NJ – $290,100 – +16.0%
   1. Still recovering from Great Recession with room for prices to increase.
8. Reading PA – $200,000 – +14.2%
   1. Still recovering from Great Recession with room for prices to increase.
9. Killeen TX – $205,000 – +13.9%
   1. Population growth in Killeen is double national growth rate.
   2. Texas Water Development Board estimates population will grow by 23% into 2030.
   3. Median age is 29.
10. Milwaukee WI – $245,000 – +14.0%
    37. Inventory in Milwaukee has dropped =37.3% during the last 3-4 years.

The proof is in the evidence of home price light beams within smaller, more affordable metros. According to Frank Nothaft, chief economist with CoreLogic, “Even with deceleration in home price increases…we are still seeing strong home buying in smaller metros that have good affordability and solid job growth.