From a booming town economy to an affordable location that's close to an ultra-pricey market, some cities across the U.S. are seeing a boom in their home prices, according to a study by Realtor.com [1]. Many of these cities, according to the study are outlier metros that are seeing an accelerated rate of growth in home prices.
The study [2] analyzed the increase in median list prices on realtor.com from September 2017 to September 2018 in the nation's 300 largest metropolitan areas and then ranked the places that indicated the biggest percentage change in home prices during that time period. To ensure geographical diversity, Realtor.com said that it had limited its list to just two metros per state.
With a median list price of $271,000 and an annual change of 34.4 percent in home prices, Odessa, Texas topped the list of cities where home prices are soaring. The reason, according to the study is the booming oil and gas market in this town that has spurred job growth to a new high. The inventory shortage in the city though follows the story being played out in the rest of the country with the number of homes on the market falling 44 percent in one year, and pushing the prices even higher.
Another Texas-based city, Wichita Falls, was ranked second on this list, with a median price of $140,000 for a home and a one-year change of 27.2 percent. The city's proximity to Dallas and its affordably priced homes make it a huge draw for people looking at more affordable options, according to Realtor.com.
Taking the third place is Homosassa Springs, Florida with home prices averaging $225,000 and a year-over-year change of 22.1 percent. It's proximity to Tampa and an economy that's growing after a rough patch has made this an ideal location for retirees looking for affordable options under the sun and those moving for better job prospects.
At no.4, Terre Haute, Indiana, saw a year over year price change of 21.8 percent. Yet, homes in this city average $109,600. Battle Creek, Michigan, rounded the top five on this list with a median list price of $140,000 and a one-year change of 20.9 percent, Realtor.com said.
Bowling Green, Kentucky; Burlington, North Carolina; Boise City, Idaho; Las Vegas, Nevada; and Indianapolis, Indiana were the other cities among this list.