After a very long housing market slump, it’s starting to seem like things are getting back on track. Although the overall American housing market is only slowly and steadily recovering, some housing markets are heating up faster than others. Here are the top 5 housing markets so far for 2013:
1. Phoenix, AZ
Phoenix is the hottest housing market right now, thanks in large part to a surge of investors. But many other people flock to Phoenix because of its mild temperatures in the winter – making the area’s golf courses and spring training baseball games a hit. In fact, many snowbirds purchase a second home here to live in during the winter months. And with summertime temperatures reaching 120 degrees here, Phoenix is literally the hottest housing market in America!
Phoenix was one of the cities that was hit hardest when the housing market crashed, but out-of-state interest (i.e.: investors) has increased both the number of sales and the asking prices in the Valley of the Sun.
2. Los Angeles, CA
Cities with mild climates tend to attract the most buyers, as many investors look to these cities for vacation rental opportunities or for the chance to flip homes for a profit. Los Angeles’ housing market is heating up, but realistically, the dramatic increase is due to the huge drop in home values when the housing market crashed. According to a recent survey, home values are down 33% from its peak in 2006. The good news is that there has been a steady growth in the local housing market, making L.A. one of the fastest-growing housing markets so far this year.
3. Sacramento, CA
As the state capital of California, Sacramento is also home to relatively mild temperatures and a growing housing market. In fact, a recent survey found the projected median home price gain at nearly 12%.
Even though home prices here are 50% lower than what they were at the peak of the housing bubble, the steady increase in prices shows promising opportunities. The fact that this state capital also expects a surplus in its budget for 2013 adds to the likelihood that it will be a hot housing market for the rest of the year, too!
4. Seattle, Washington
Seattle is our pick for the 4th-hottest housing market for 2013, even though the city is well-known for its dreary, rainy skies. Asking prices in Seattle rose nearly 9% more than they did in many of the other hottest housing markets around the country. There is a ton of new construction around town, too. Even though average home prices are higher here than in most places, Seattle should continue to see a steady increase in its housing market for the rest of 2013.
5. Houston, TX
Houston could be the hottest housing market when all is said and done in 2013! The area’s job market didn’t get hit as hard by the recession as other places did, and it has seen even more growth recently. The housing gains being made here are better than any other major housing market in the United States.
The combination of affordable housing prices and a stable job market have attracted many buyers into the Houston area. Due to all of those additional buyers, Houston has already seen a large increase in residential construction permits this year.
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