Housing
Phoenix, LA Expected to Lead Housing Markets in 2017 Growth
Published:
Last Updated:
Housing prices, it would seem, may have peaked. The September Case-Shiller data showed home prices have surpassed their pre-recession bubble prices. However, most of the data about home prices share one thing in common. Some markets have a way to go to recover. Others will have prices that go above bubble valuations, substantially.
Realtor.com looked at what home prices in the 100 largest markets will do next year. Most of the top 20 markets in terms the “Top Real Estate Markets” are in warm areas, both in the south and west. Among the exception is deeply scared Detroit. It is among several other markets that had high double-digit drops when the bubble burst.
Strength in local economies will be among the most important engines of rising prices:
The top 10 markets all benefit from strong growth dynamics: population, jobs, and households,” says Jonathan Smoke, realtor.com’s chief economist, who analyzed the country’s 100 largest metropolitan markets for their growth potential. “They all have low unemployment that’s heading lower, which buoys consumer confidence.”
Additionally:
Western cities account for 11 of the top 25 metro markets on our list, including five in California. But whatever their location, all the top markets have in common relatively affordable rental prices, low unemployment, large populations of millennials and baby boomers, as well as a high number of listing views on realtor.com. The top 10 are forecast to see average price gains of 5.8% and sales growth of 6.3%, exceeding next year’s anticipated national growth of 3.9% and 1.9%, respectively.
Realtor.com’s list of the top 20:
| Rank | Top Markets | Median Price | Price Growth | Sales Growth |
| 1 | Phoenix, AZ | $300,000 | 5.94% | 7.24% |
| 2 | Los Angeles, CA | $675,000 | 6.90% | 6.03% |
| 3 | Boston, MA | $480,000 | 6.09% | 6.32% |
| 4 | Sacramento, CA | $420,000 | 7.18% | 4.92% |
| 5 | Riverside, CA | $350,000 | 4.98% | 6.88% |
| 6 | Jacksonville, FL | $284,000 | 4.79% | 7.03% |
| 7 | Orlando, FL | $272,000 | 5.69% | 6.10% |
| 8 | Raleigh, NC | $312,000 | 4.16% | 7.55% |
| 9 | Tucson, AZ | $237,000 | 6.10% | 5.47% |
| 10 | Portland, OR | $420,000 | 6.55% | 5.02% |
| 11 | Durham, NC | $320,000 | 2.55% | 8.95% |
| 12 | Colorado Springs, CO | $335,000 | 4.77% | 6.71% |
| 13 | Jackson, MS | $207,000 | 1.98% | 9.44% |
| 14 | Detroit, MI | $195,000 | 5.17% | 6.22% |
| 15 | San Diego, CA | $620,000 | 6.47% | 4.89% |
| 16 | Salt Lake City, UT | $345,000 | 6.66% | 4.67% |
| 17 | Deltona, FL | $260,000 | 3.10% | 8.23% |
| 18 | Provo, UT | $334,000 | 5.16% | 5.84% |
| 19 | Austin, TX | $385,000 | 3.50% | 7.40% |
| 20 | Seattle, WA | $430,000 | 7.36% | 3.41% |
Are You Ahead, or Behind on Retirement? (sponsor)
If you’re one of the over 4 Million Americans set to retire this year, you may want to pay attention.
Finding a financial advisor who puts your interest first can be the difference between a rich retirement and barely getting by, and today it’s easier than ever. SmartAsset’s free tool matches you with up to three fiduciary financial advisors that serve your area in minutes. Each advisor has been carefully vetted, and must act in your best interests. Start your search now.
Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.