As we prepare to enter into 2016, one can only wonder what the next year will bring in terms of housing. One thing is for sure though, the picture will look completely different as hot markets begin to cool down.
Realtor.com's 2016 Housing Forecast showed that new markets where buyers and sellers are more motivated and active will emerge in 2016. The days of San Francisco, California; Denver, Colorado; and Dallas, Texas dominating the housing market are soon-to-be-over.
"Many of the markets that have consistently made our “hot list” because of high demand from buyers and quick sales didn’t make the cut for 2016, because they are predicted to see slower price appreciation and even declining sales. Notably, they include the greater metro areas of San Francisco, Denver, and Dallas," the forecast stated.
The new markets that are expected to be popular in 2016 are in high demand among consumers, with 60 percent more listing page views than all of the U.S. inventory, the report found.
Providence, Rhode Island is at the top of Realtor.com's list with a median sales price of $288,000, followed by St. Louis, Missouri with a median price of $162,000 and San Diego, California with a median price of $585,000.
"Surging demand in each market can be attributed to growing household formation, a prosperous job market, and low unemployment rates as well as large populations of key demographics," Realtor.com said.
Demand is projected to be led by older millennials (25 to 34 years old), younger Gen Xers (35 to 44 years old), and retirees (65 to 74 years old).
“Some markets have been hot and are remaining hot (San Diego, Sacramento, Boston, Atlanta),” said Jonathan Smoke, Realtor.com's Chief Economist. “Some are just now seeing signs of recovery based on substantially better economic conditions forecasted for next year (Providence, New Orleans, Virginia Beach, St. Louis). Some are spillover markets from very hot markets (Providence, Sacramento), and most have one or more key demographic driving demand.”
Realtor.com's Top 10 Real Estate Markets in 2016:
- Providence, Rhode Island
- St. Louis, Missouri
- San Diego, California
- Sacramento, California
- Atlanta, Georgia
- New Orleans, Los Angeles
- Memphis, Tennessee
- Charlotte, North Carolina
- Virginia Beach, Virginia
- Boston, Massachusetts