With the way home prices are trending, it’s definitely a seller’s market out there, but the old saying is still true: In real estate, it’s all about location, location, location. We’ve taken a look at some of the best and worst states for home sales right now.
Before we jump in, it’s important to note that the biggest predictor of your home’s value will be the sale of similar homes within a few miles of your neighborhood. Just because your state is on one of these lists doesn’t mean you’re going to have fortune or misfortune when you sell your home. In many of the states listed here, there are both thriving and struggling areas in terms of housing demand.
The Best States for Home Sales
These are some of the states that currently have the hottest housing markets. Let’s see where your real estate could fetch a pretty penny.
California has beautiful weather, but what really sets the Golden State apart isn’t gold but silicon. Technology companies have made Northern California’s Silicon Valley, which includes cities like San Francisco and San Jose, one of the premier hot spots to spend your career, especially if you have an idea for a new app or service of any kind. This has brought high salaries and higher home values to the area. It also doesn’t hurt that Hollywood stars drive up home values in the state.
One commonality in these states is people’s inclination to live in warm weather. Beyond having a healthy amount of sun, Texas has four top housing markets, according to monthly home-value data lists from the National Association of Realtors, Trulia, and Quicken Loans.
Austin and Dallas are projected to have 3.3 percent and 4.7 percent value increases over the next year, respectively.
Austin is a growing technology and entertainment hub, and Dallas has more than 140,000 available job openings.
San Antonio is home to the landmark Alamo and the beautiful Riverwalk, while El Paso is a big university town.
3. North Carolina
Raleigh-Durham and Charlotte push North Carolina onto this list. Charlotte is the location of many major financial services companies and has become an important area for that entire sector in the United States. Raleigh-Durham is part of what’s known as the Research Triangle, hosting several of the state’s major universities. There’s high job growth and a low vacancy rate there, which has led to higher home prices.
Two of the hottest housing markets in the country are Deltona and Lakeland, Florida. The key to the rising demand in each is the cities’ proximity to desirable destinations. Deltona is only 30 minutes from both Orlando and Daytona Beach. The National Association of Realtors projects that the area’s economy will grow by 8.3 percent and home prices will rise by 6 percent. In Lakeland, which is between Tampa and Orlando, home prices are expected to see a seven-percent rise.
Colorado homeowners have some hot housing markets. According to the National Association of Realtors, homeowners in Colorado Springs can expect prices in the area to increase by 5.7 percent, with sales growing at a rate of 3.1 percent. Denver, the state’s capital and largest city, is typically near the top of the market surveyed by Quicken Loans, where appraisals of real estate come in higher than homeowner expectations. There’s also some great hiking and skiing in Colorado’s mountains.
The Worst States for Home Sales
The picture isn’t all rosy. Let’s look at a few areas where the housing market isn’t moving up so fast. It’s worth noting that markets with lower home prices sometimes correlate with a lower cost of living and can provide more bang for your buck.
The Show-Me State ranks 10th highest for cost of living and 11th for home affordability. The median income is $27,122 and the average price of a home is $246,914. There are some highlights to Missouri, though. Kansas City and Saint Louis have a ton of sports and entertainment attractions, and Branson can be a good place to hear some music or see a show.
Michigan’s home prices are on the lower end, according to various sources. You can get some residential bargains particularly around Detroit and in Bay City. According to U.S. News & World Report, the state ranks eighth lowest in terms of cost of living, and fifth lowest in terms of housing affordability. The average home price is just $261,684.
Downtown Detroit is undergoing a real revitalization, and Trulia considers Grand Rapids to be one of the hottest housing markets around.
Ohio is considered the number-one state in terms of affordability by U.S. News & World Report. It’s ranked 11th in terms of cost of living, and its residents have a median income of $27,535. Here it costs $3.87 for a pound of ground beef, $1.61 for a half gallon of milk and $1.14 for a dozen eggs. However, Ohio ranks number-one in terms of housing affordability, with an average home price of $264,078.
Still, there are metro areas in the state where homes are going for more. Both Cincinnati and Columbus make Trulia’s list of hot housing markets.
Continuing a mostly Midwestern theme to this portion of the list, we have Nebraska up next. It’s 13th in terms of cost of living, but groceries are still affordable. It’s fourth in terms of housing affordability, with an average home price of $304,636 and a median income of $30,391.
Football is a big deal for Nebraskans, making the University of Nebraska a draw for some, and every year the College World Series is held in Omaha.
The Hoosier State is number seven in terms of cost of living, but ranks third overall in housing affordability. The median income is $27,279, and the average home price is $265,581, according to U.S. News & World Report.
For sports and racing fans alike, Indiana is home to the Indianapolis 500 and the headquarters of the National Collegiate Athletic Association.
Are you looking to buy a home in these cities or any others sometime soon? You can get a preapproval online through Rocket Mortgage by Quicken Loans. If you would rather get started over the phone, feel free to contact one of our home loan experts at 888-980-6716.
About the Author
Zing Blog writer, baseball fan, and tech geek Kevin Graham has written content about everything from toys to personal finance tips. His journalism career began at Oakland University and he has since freelanced for local newspapers before joining the Quicken Loans team.