(NEXSTAR) – U.S. house costs are nonetheless surging because the housing market continues to growth amid the COVID-19 pandemic.
A brand new report from Realtor.com exhibits lots of the high housing markets going into 2022 shall be tech hubs within the Mountain West and the Midwest. Consultants say these areas have robust economies, low unemployment charges, and appreciable job development.
The typical itemizing worth for the projected hottest housing markets for 2022 reported a median itemizing worth of $431,000 in November, nicely above the nationwide median worth of $379,000. These cities supply extra choices for these shifting in than different huge metropolitan areas like New York and San Francisco, the report explains.
“Our high housing markets are attracting remote-minded employees, presumably taken with snagging a big-city wage whereas nonetheless having fun with the standard of life that these usually smaller areas afford,” says Danielle Hale, Chief Economist with Realtor.com.
Within the report, Realtor.com analyzed the anticipated development of house gross sales and costs in 2022 and in contrast them with the 12 months earlier than within the nation’s 100 largest metropolitan areas. Elements included earlier sale costs and the variety of gross sales; the quantity of recent building; and former and anticipated financial, family, and earnings development.
The highest housing markets for 2022 are:
- Salt Lake Metropolis, Utah
- Boise, Idaho
- Spokane-Spokane Valley, Washington
- Indianapolis-Carmel-Anderson, Indiana
- Columbus, Ohio
- Windfall-Warwick, Rhode Island-Massachusetts
- Greenville-Anderson-Mauldin, South Carolina
- Seattle-Tacoma-Bellevue, Washington
- Worcester, Massachusetts-Connecticut
- Tampa-St. Petersburg-Clearwater, Florida
These aren’t solely the most popular housing markets for the brand new 12 months – they’re additionally among the many most overpriced. All 10 fall among the many high 50 metropolitan areas the place houses are promoting above historic costs.
In a report from Florida Atlantic University, researchers used open-source information from Zillow or different suppliers to calculate the 100 most overpriced or underpriced metropolitan cities within the U.S. The primary report was issued in July 2021 with a brand new report launched every month, the newest being from November.
FAU provides every metropolitan space a rating. A optimistic rating signifies a premium, which means the typical property in a metro is promoting above its historic implied worth. A detrimental rating represents a reduction, which means the typical property is promoting beneath its historic implied worth.
Three of the housing markets anticipated to be the most popular subsequent 12 months are among the many high 10 most overpriced markets – Boise with a 78.36% premium, Spokane at 48.94%, and Salt Lake Metropolis at 47.32%. Tampa is available in among the many high 15 at 39.94%. Indianapolis, Columbus, and Seattle all have premiums above 30% with Greenville shut behind at 27%. Windfall and Worcester have the bottom among the many 10 housing markets, coming in at 14.61% and 17.44%, respectively.
In response to FAU, simply two metropolitan areas are seeing reductions on house costs: Baltimore and concrete Honolulu.
House costs throughout the nation surged once more in October because the housing market continues to growth within the wake of final 12 months’s coronavirus recession.
In the course of the week of Christmas, mortgage charges fell to three.05% for the benchmark 30-year, fixed-rate and a couple of.66% for the 15-year fixed-rate house mortgage. The persistently low charges sign that credit score markets seem extra involved concerning the omicron variant miserable financial development than concerning the highest inflation charges in practically 40 years.
The Related Press contributed to this report.