As the cost of housing continues to rise, people who are in a position to buy real estate may want to consider purchasing a home before the market heats up. However, finding the right place to buy a property depends greatly on individual circumstances and preferences.
For some prospective buyers, finding a place near their work or a good school system is essential. For others, it’s all about finding the right price. And for others, it’s important to live in a safe neighborhood where they can raise their kids or retire comfortably.
If you’re not sure about where to look for your next home, you’re in luck.
GOBankingRates spoke with Dottie Herman, vice chair and former CEO of Douglas Elliman Real Estate; Jennifer Patchen, real estate broker for Opendoor; and Rhett Wiseman, real estate investor and CEO of Section 8 Coaching, for their thoughts on where to buy real estate now.
Dallas, Las Vegas and Nashville, Tennessee
Dallas, Las Vegas and Nashville, Tennessee, could be worth checking out if you’re in the market to purchase real estate.
“When it comes to buying a home, there are a few U.S. cities that I would focus on more so than others. Nashville, Dallas, and Las Vegas are three cities that will see tremendous appreciation over the next few years,” Wiseman said.
“Tennessee, Texas, and Nevada have been cutting taxes for businesses, creating more jobs, and increasing the quality of life for new homebuyers over the past few years, and that will continue,” Wiseman added. “These markets have not seen nearly the decline in home sale prices, and transaction volume that other major U.S. cities have experienced since rates have increased.”
Other Texas Cities
While Dallas definitely makes the list, it’s not the only Texas city to consider for your home. Jennifer Patchen suggested several other areas within the Lone Star State that could be worth checking out. Here are the top 10 hottest U.S. ZIP codes within Texas, according to Opendoor’s findings:
- San Antonio
As for the top 15 family-friendly cities, Watauga, Texas, also made the list.
“We’re seeing areas in the West and Southeast gaining favor among homebuyers. These neighborhoods are on the rise thanks to their spacious living and small-town vibes, among other factors,” Patchen said.
“Many of these ZIPs are close to major cities — but not right in the center of the action,” Patchen added. “This tells us that homeowners are looking for neighborhoods and communities with developed amenities, but are further outside of heavily populous areas where they can also achieve a more relaxed and peaceful lifestyle — something we like to call ‘simple-sizing.'”
Many of these locations also offer a variety of family-friendly features that draw people in. This includes neighborhoods, parks and other outdoor amenities.
Massachusetts is another state to keep in mind when shopping around for real estate, specifically Somerville. According to Opendoor, Somerville is another top 15 city for families looking to raise their children.
“Family-friendly neighborhood features and amenities are a big deciding factor for home shoppers,” Patchen said. “In fact, half of first-time homebuyers listed ‘family’ as the top reason they decided to purchase a home last year.”
Like other family-friendly cities, Somerville has “close proximity to outdoor space and offer[s] family-focused programming and amenities. For families looking to prioritize parks and other outdoor amenities, these locations are great options,” Patchen said.
Major Metros in California, New York and D.C.
Major metropolitan areas and family-friendly suburban areas are also prime spots to check out in the coming months.
“I’ve always believed in big cities and large metro areas,” Herman said. “Companies now want employees back in their offices and have now created new hybrid attendance policies. Working remotely full-time from home is not going to be offered anymore. Major markets and suburbs in New York, LA, San Francisco, Washington, and others will be good investments to buy now. In the long run, that’s where most of the country’s jobs and strong local economies are based.”
New Jersey or Virginia
For prospective buyers looking for a family-friendly city in the Northeastern region of the country, New Jersey could be a great choice. Opendoor found that Cliffside Park, in particular, has great family-friendly neighborhoods and amenities, making it a good location for young and growing families alike.
The same goes for Virginia for those interested in purchasing property a little further south. Arlington is another top city for families, according to Opendoor.
South Carolina or Colorado
Last but not least, Summerville, South Carolina, and Parker, Colorado, both make the list. According to Opendoor data, these are not only two of the hottest cities to buy in right now, but they also rank well when it comes to neighborhoods and larger living spaces — among other things. They may also be less crowded than bigger metros, while still being near enough to benefit from the same amenities and opportunities.
Metropolitan Areas Could Continue To Heat Up
As people consider where to buy a home in the next few months, one thing to note is that larger cities could experience the greatest price hikes.
“With mortgage rates still fairly high and an extremely tight market, I can see prices continue to rise in the large metropolises in the coming months,” Herman said. “I think the big price jumps in the small to medium-sized towns are going to fizzle out as the larger cities continue to come back after COVID. Prices in those big market areas can go as high as the market will bear. There are just so few homes for sale in the most prime areas of the country.”
Will the Housing Market Really Heat Up This Fall?
While the housing market might heat up in some areas this fall, it might not be as much as you’d expect, especially since the Federal Reserve is expected to increase interest rates again.
According to Wiseman, fall isn’t generally a time when the housing market heats up. “The Fed will most likely increase rates again, making home mortgages less affordable. To combat that on the selling side, sellers will need to drop prices in order to make homes more affordable for buyers. The holiday season also slows down the market naturally, as historically, buyers tend not to buy as much from October through December,” Wiseman said.
“Historically, spring and early summer are busy seasons in real estate and activity tends to slow down in the fall and winter. With fewer buyers in the market, there’s often less competition, more time to evaluate their options, and more bargaining power when it comes to negotiating a sale,” Patchen said. “Seasonal and macroeconomic factors should certainly be considered in the moving process, but ultimately, there’s never a silver bullet to knowing the ‘perfect’ time to buy or sell.”
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