Summer, thank you for finally getting here! (Actually, according to astronomy, we just passed the height of summer, but that seems unfair to those locations where the warm season has only just begun in earnest.) Between days of lazing on the beach, gorging at backyard barbecues, and escaping to vacations, house hunters are getting serious. After all, there isn’t much time left to close on a home before school starts for the kids.
As we do every month, the realtor.com® economic data team took a look back at which housing markets were ablaze with activity in June. These are the places where house hunters are clicking madly on our listings, hoping to find that dream home, and where homes get nabbed shortly after making their debut on the multiple listing service.
The story in June is that, as home prices continue to rise (the median listing price was $299,000, a 9% increase over the same time last year), buyers across the country, and especially in the most expensive markets, are having second thoughts.
The latest list of the 20 hottest markets offers more proof that buyers are starting to feel the affordability crunch, says Javier Vivas, director of economic research at realtor.com.
“We’re seeing interest and money shift away from the overheated markets into less expensive secondary markets,” he says.
Notable among those overheated markets are the major cities of California, which no longer dominate the top 20, as they have in the six years that we’ve been doing this ranking.
“It’s a signal of those markets coming to a point where people are either understanding that they’re not getting the home they want or they have to make a sacrifice,” Vivas says.
And while about 547,000 new listings hit the market in June, there’s still a mismatch in many metros between the types of homes that are on the market, and the types of homes that buyers want.
“A slightly below-average-sized home within a good commute is the hottest product right now,” Vivas says.
So who’s got the goods? The top metro in our ranking, for the third month in a row, is Midland, TX, where buyers can get a decent-size home at an attractive price. That’s because with less population density, land is cheap and even new construction costs less than the national median. And with the economic momentum of Texas behind it, Midland has plenty of buyers with down payments in hand.
Finally, some advice for those hoping to buy in the hottest markets, in the sweltering season of frenetic home buying: If you see that elusive home that’s right for you, at a price you can afford (even if it seems high), pounce on it.
“Even if we see some markets overheat and demand softens slightly, that doesn’t mean prices will go down,” Vivas says.
So here’s the hot list. Happy house hunting! Don’t forget the sunblock.
The hot listRank (June) Market Rank (May) Rank Change1Midland, TX 102Columbus, OH 423Boston, MA 2-14Fort Wayne, IN 1065Boise City, ID 616San Francisco, CA 3-37Vallejo, CA 5-28Buffalo, NY 809Colorado Springs, CO 11210Detroit, MI 16611Racine, WI 20912 Grand Rapids, MI 9-313 Sacramento, CA 12-114 Rochester, NY 14015 Kennewick, WA 614616Stockton, CA 7-917Dallas, TX 19218Worcester, MA 13-519Spokane, WA 18-120Santa Cruz, CA 255
The post The Hottest Markets in June 2018: What Happens When They Get Too Hot? appeared first on Real Estate News & Insights | realtor.com®.
Source: Housing Trends Feed