A new decade will usher in a new generation of homebuyers. Millennials are set to overtake the market and they bring with them new ideals, wants, and desires for homeownership. According to realtor.com, one of those ideals is ditching the high-priced metros and moving into the suburbs.
A new study from realtor.com [1] revealed the top real estate markets for 2020 will be those focused on affordability, relative to nearby pricey metros.
"The cities that we expect to do best in 2020 are not necessarily big, fancy, coastal cities, but secondary markets where the job market is still pretty good but housing is affordable," said Danielle Hale, Chief Economist of realtor.com.
The city poised to be the top market next year is Boise, Idaho. Boise is home to median-home prices of $295,000, and a local realtor described the housing market as “absolute craziness.”
“I don’t think you can stand and do a 360-degree turn in this town without seeing construction," said Robert Inman, real estate agent at Boise’s Best Real Estate.
CoreLogic’s October Home Price Index (HPI) [2] noted home prices rose 3.5% and are projected to increase by 5.4% over the next year. The increase in the October 2019 HPI gain, however, was down from October 2018’s rise of 5.2%.
Idaho continued its streak of leading the nation in appreciation, which it had done for more than a year, reporting an annual appreciation of 10.9% in October. The next closest state was Maine with an appreciation rate of 8%. Connecticut's home prices were unchanged from October 2018.
Following Boise is McAllen, Texas, which has a median-home price of $152,000.
"We have a growing population, and they need houses," said Rene Galvan, owner of the local brokerage RGV Realty.
Other markets making up the top-10 were: Tucson, Arizona; Chattanooga, Tennessee; Columbia, South Carolina; Rochester, New York; Colorado Springs, Colorado; Winston-Salem, North Carolina; Charleston, South Carolina; and Memphis, Tennessee.