What do Wilmington, Philadelphia, Atlanta and Rochester have in common? According to a recent housing industry report and forecast, these four real estate markets are currently “heating up” more than any other metro area in the country.
8 Housing Markets ‘Heating Up’ the Most
Recent reports have shown that the pricier coastal real estate markets like San Jose, California and Seattle, Washington are finally cooling down. In those types of markets (which have experienced a huge run-up in prices over the last few years), home values are now rising more slowly. And sellers are starting to make price cuts due to softening demand.
But according to a recent report from the real estate brokerage Redfin, many of the more “affordable inland metro areas are heating up” as we approach the end of 2018. These housing markets are poised for steady price growth and increased competition in 2019.
These warming markets include Wilmington, Delaware; Philadelphia, Pennsylvania; Atlanta, Georgia; and Rochester, New York. In these and other metros listed in the report, housing supply is shrinking and homes are selling faster.
Methodology: To determine which real estate markets across the country are warming up the most, Redfin “ranked the top 25 metro areas with populations of at least 500,000 people.” They looked at three indicators that suggest how active and competitive each market was, as of fall 2018:
- Declines in housing inventory (the number of homes for sale)
- Increases in the number of homes going under contract within two weeks
- Increases in the share of homes selling for more than their list price
Based on this analysis, the group determined that the following metro-area housing markets are heating up the most:
- Wilmington, Deleware
- Philadelphia, Pennsylvania
- Atlanta, Georgia
- Rochester, New York
- Greensboro, North Carolina
- Akron, Ohio
- Richmond, Virginia
- Buffalo, New York
Of course, the degree of “warming” varies from one real estate market to the next. Each metro area has a different supply-and-demand dynamic. Here’s a more in-depth look at the four metro areas that topped their list.
Wilmington, DE: Housing Inventory Has Shrunk
In Wilmington’s housing market, the number of homes for sale decreased by -24.5% in October 2018, compared to a year earlier. That means there are significantly fewer homes on the market today than in the past. Typically, this kind of inventory contraction leads to increased competition among home buyers and sends prices north. Perhaps that’s why the company forecast that the Wilmington housing market was “heating up.”
Philadelphia, PA: Strong Home-Price Forecast for 2019
Like the other top four cities on this list, Philadelphia’s housing market has also shrunk over the last year or so. Homes are selling quickly due to strong demand and limited supply. According to a November 2018 forecast from Zillow: “Philadelphia home values have gone up 11.0% over the past year and Zillow predicts they will rise 12.8% within the next year.” That’s one of the strongest long-range forecasts we’ve seen for a major U.S. city.
Atlanta, GA: Homes Are Selling Quickly
According to the report mentioned above, nearly 29% of homes listed for sale in Atlanta were off the market within two weeks. That was for October 2018. About 21% of homes sold for more than the original list price. These indicators point to a market with strong demand from buyers and account for Atlanta’s positive housing forecast for 2019.
Rochester, NY: Many Offers Above List Price
Rochester, New York is another metro area where homes are selling quickly, and often above the list price. Based on the above report, 36% of homes sold within two weeks and for above the initial listing price. A recent forecast from the economic research team at Zillow predicts that prices in Rochester will continue inching upward into 2019.
Disclaimers: This article contains data, forecasts and reports provided by third parties not associated with our company. That information is deemed reliable but not guaranteed. The Home Buying Institute (HBI) makes no claims or assertions about future housing market conditions.