Real estate is on the rebound as the American economy improves and Millennials start to buy their first homes and form families. An aging and decreasingly mobile population is altering the real estate market in its own way. Here are three red hot real estate market trends to watch in 2018.
Real estate prices are skewed upward by the insane prices in high demand markets like San Francisco, Vancouver and Washington, D.C. A law firm made the news in December, 2017 because it considered it cheaper to buy a three million dollar jet and fly attorneys to California regularly to meet clients than pay them enough to live in San Francisco.
Both the United States and Canada have been reducing the amount they are willing to insure mortgages for at the top end of the market in a bid to dampen housing prices. And population figures show that the hottest markets are evolving, too, with more people selling a home and moving to cheaper locales while people in lower tax brackets double and triple up. This is going to lead to a softening in those markets as homes sit on the market longer and prices start to come down.
Millennials are bidding up homes in new urban centers being built in the suburbs, dense planned communities where you can walk the kids to school and daycare or jog through the park, walk to retail outlets, and connect with public transit or are a short drive to a major artery. These communities offer a mix of condos, single family homes and townhomes to suit a wide range of price-points. However, Millennials are also looking for low maintenance properties; this is why more and more house-like multi-family complexes are showing up on sites like Elevate Living.
Atlanta was named the new, second administrative hub for Amazon. Expect to see real estate prices soar as many Amazon employees move there and the company’s supply chain shifts operations there. Las Vegas, Nevada is in the upswing as it sees many people relocate from California to low-tax Nevada.
The third coast, the Gulf Coast, is also booming. Florida’s Gulf Coast is attracting attention because you get the same great weather, cheaper homes and a lower risk of hurricanes. Sarasota is in heavy demand because it has beautiful weather and a full time community instead of the more transient communities you see in Miami.
Dallas, Texas is expected to see roughly 6% growth in both sales and home prices, while it is considered one of the most profitable rental real estate markets. Trulia ranked San Antonio as one of the top real estate markets because home prices are very affordable while the influx of new factories is providing many new jobs in a city best known for tourism.
The new economic realities has forced some of the hottest markets to cool off. This is driving many to new, long mocked markets like Texas and the Gulf Coast. New dense development in the suburbs and mixed-use communities in inner ring suburbs as they redevelop are also attracting interest from young and old buyers alike.