Real Estate Market Outlook 2016
We are about 7 years out from the housing market crash which provided great buying opportunities. We are seeing real estate markets return in some case to highs prior to the crash, but most markets have drastically improved from the bottoms after the crash. We have seen fewer foreclosures and distressed properties and short sales, although they continue to trickle into the market. Inventory is generally low and interest rates are still excellent while rates are slowly creeping up.
The 10 hottest housing markets for 2016 and for the next 5 years, as reported by Housing Predictor are as follows by rank. Keep in mind the project percent gain is over a 5 year period.
1) Miami, Fl.
The Miami area is projected to see 18.7% between 2016-2021. Miami is an international destination and vacation spot and attracts buyers from all destinations.
2) San Francisco, Ca.
San Francisco has a excellent economy and a diverse population, and a world class city. The project growth for 2016 is 15.5%.
3) Los Altos, Ca.
The Los Altos area is projected to see 15.5% between 2016-2021. Los Altos benefits from being adjacent to Silicon Valley, and very wealthy clientele able to pay in cash in many cases. The median household income of Los Altos for 2009-2013 was $157,907.
4) Seattle, Wa.
The Seattle area is projected to see 14.9% between 2016-2021. Seattle benefits from a strong Economy with Boeing, MicroSoft and Amazon to name a few. High salaries and a strong economy should support increasing home prices.
5) Medford, Or.
The Medford Oregon area is projected to see 13.9% between 2016-2021. Median household income is 42,244. The median home values is 212,400.
6) Eugene, Or.
The Eugene Oregon area is projected to see 12.8% between 2016-2021. Median household income is 41,525. The median home values is 214,400.
7) Napa, Ca.
The Napa Ca. area or Wine Country is projected to see 12.7% between 2016-2021. Napa is projected to see economic growth and construction, and appreciation as never seen before.
8) Naples, Fl.
The Naples Florida area is projected to see 12.5% between 2016-2021. Median household income is 77,525. The median home values is 309,800.
9) Austin, Tx.
The Austin Texas area is projected to see 11.6% between 2016-2021. Austin has a strong economy, with a University in town, and a booming technology industry, and great nightlife. Its a sure best home prices will continue to increase.
10) Tucson, Az.
The Tucson Arizona area is projected to see 10.5% between 2016-2021. Tuscon has a great climate, Median household income is 42,661. Median home value is a very affordable $146,400.
For an article about the top foreclosure markets for 2015 click here.
The top 10 real estate markets may not to be too surprising, since these trends are not drastically different from year to year. These are the places that are expected to see the strongest housing growth, affordable prices and high affordability, and employment growth.
There is however new research from the National Association of Realtors, that areas with lower cost of living, warmer weather and low taxation will see a higher than average influx of baby boomers. The baby boomer generation represents the largest generation by population about 80 million. Baby boomers are retire later, and in many cases working past 65. This sets to stage for large population shifts now and in the coming years. The top 10 metro areas that will be affected by this population shift is listed below, again listed in alphabetical order.