2018 was a booming year for the housing market, with home values nationwide rising approximately 7.7% over the previous year. We rounded up the five markets that saw the highest rate of growth over the past 12 months and compiled the data into the infographic below. So without further ado, here’s our rundown of the top-five hottest housing markets of 2018.
Las Vegas, Nevada
Home prices are projected to rise 7.9% in 2019, but the demand for houses might not follow. At the end of November 2018, approximately 7,000 single-family homes were listed without offers, up 54% from the previous year.
Rising interest rates, skyrocketing prices and a surplus of inventory will likely create a housing market that’s favorable for buyers in 2019.
Home values rose 13.3% in 2018, second only to Las Vegas. While the Las Vegas sellers market is starting to slow, many experts predict Atlanta’s market will continue outperform the national average.
Homes in Atlanta are extremely affordable (valued around $215,000 in November 2018), and housing inventory was down in 19.7% from the previous year. Buyers should expect competition, even as the overall U.S. housing market cools.
Indianapolis is quickly becoming a favorite city for real estate investors. A booming economy and strong job market helps support a healthy housing market for sellers.
Home values increased 12.7% in 2018 according to Zillow, yet the average home value was only $161,600 in November 2018. Affordable, reasonable Midwest home prices attract investors and first-time home buyers, while shrinking inventory ensures strong demand.
Charlotte, North Carolina
Charlotte, ranking 22nd on U.S. News’ “Best Places to Live” list, attracts a young, hip demographic that’s starting to enter the housing market. The thriving city saw a 11.48% increase in home values over 2018.
However, Zillow estimates home values won’t see such dramatic increases in 2019 (estimated at a 4.5% increase year over year).
San Jose, California
While other tech-centric real estate markets, such as Seattle, have been slowing down in recent years, San Jose was just named the hottest housing market in the U.S. for both 2018 and 2019.
Zillow estimates home values will increase a whopping 19.22% in 2019. As tech companies flock to the area and salaries continue to rise, the San Jose real estate market will remain incredibly competitive for buyers.
About the Author: Tommy O’Shaughnessy is a Research Analyst at Clever Real Estate who conducts surveys, analyzes data and studies trends to understand the real estate market.