For the past few years, the housing market has been performing rather well, but it is still quite far away from returning to its former glory. The persistently scant number of new homebuyers has been the primary reason behind the slow progress of the housing market, but experts at Realtor.com predict that things are about to change for the better.
As 2015 approaches, the Millennials are now moving towards embracing real estate investments and this is largely due to the somewhat stable job markets. Factoring in employment rate, affordability, population growth rate and 12 other points of analysis, Realtor.com has estimated home sales rate to rise by 25% in 2015, including a significant rise in the number of first time homebuyers.
The following places are expected to experience highest growth rates in their housing markets next year:
- Denver (+14% Home Sales Forecasted):
Since the beginning of economic recovery, Denver has been one of the few places to enjoy a steady local economy. Denver has already overcome the job losses during the recession and now boasts an unemployment rate below average in its metro area, while the job growth rate is higher. It is, therefore, not surprising that Denver is expected to have the highest growth rate in home sales in the nation.
- Atlanta (11%+ Home Sales Forecasted):
Though Atlanta was not swift to recover from the blow of the recession, within the next year, it is expecting a growth in home sales rate due to its low housing prices. Atlanta used to lead the market in terms of population and household growth and is now displaying signs tof rising back in the next 5 years, with a 6% increase in homeowners.
- Phoenix (11%+ Home Sales Forecasted):
The housing market in Phoenix, a major contributor to its growth, plummeted down by almost 60% after the recession. Phoenix’s home construction industry has bounced back since and is predicted to remain busy in the years to follow.
- Washington, D.C. (10%+ Home Sales Forecasted):
Washington D.C. experienced a heavy cut in government spending in 2013 and early 2014 and despite the government gridlock slowing down its employment rate, has managed to grow mainly due to the diversification of its economy. With a booming tech industry and multitude of corporations, D.C. has been experiencing a steady rise in job growth rate and is expected to become one of the top 5 metro areas in terms of new housing over the next 5 years.
- Minneapolis (9%+ Home Sales Forecasted):
With very low unemployment rates, most of Minneapolis’s younger population is able to afford new homes. Minneapolis also has a substantially higher household income (an estimated $83,000) in comparison to the national average of about $64,000. The affordability and the strong economic growth creates an attractive combination for the Millennials to consider Minneapolis as an ideal choice for home ownership.
Check out Gary’s top 5 in the presentation below:
For full list of rising household markets, check out the full CNN Money article.
Filed Under: Real Estate News Tagged With: CNN Money, CNN Real Estate, Denver Real Estate, Gary Richetelli, Minneapolis Real Estate, Real Estate, Real Estate Investment