Report: Salt Lake City tops 2022’s hottest housing markets
(NEXSTAR) – U.S. house prices are still rising as the housing market continues to boom amid the COVID-19 pandemic.
A new report from Realtor.com shows that many of the top housing markets will be tech hubs in Mountain West and the Midwest by 2022. Experts say these areas have strong economies, low unemployment rates, and significant employment growth.
The average list price for the forecasted hottest housing markets for 2022 reported an average list price of $ 431,000 in November, well above the national median of $ 379,000. These cities offer more immigration opportunities than other large metropolitan areas like New York and San Francisco, the report explains.
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“Our top housing markets attract remote workers who may be interested in getting a big city salary while enjoying the quality of life that these generally smaller areas offer,” said Danielle Hale, chief economist at Realtor.com.
In the report, Realtor.com analyzed the expected growth in property sales and prices in 2022 and compared it to the previous year in the 100 largest metropolitan areas in the country. Factors included past sales prices and the number of sales; the height of the new building; and past and expected economic, household and income growth.
The top housing markets for 2022 are:
- Salt Lake City, Utah
- Boise, Idaho
- Spokane-Spokane Valley, Washington
- Indianapolis-Carmel-Anderson, Indiana
- Columbus, Ohio
- Providence-Warwick, Rhode Island-Massachusetts
- Greenville-Anderson-Mauldin, South Carolina
- Seattle-Tacoma-Bellevue, Washington
- Worcester, Massachusetts-Connecticut
- Tampa-St. Petersburg-Clearwater, Florida
Not only are these the hottest housing markets for the New Year – they are also some of the most expensive. All 10 are among the top 50 metropolitan areas where homes are selling above historical prices.
In a Florida Atlantic University report, researchers used open source data from Zillow or other vendors to calculate the 100 overpriced or underpriced metropolitan areas in the United States. The first report was published in July 2021, with a new report being published every month starting in November.
FAU awards a number of points for each metropolitan region. A positive score indicates a premium, which means the average property on a subway is selling above its historical implied price. A negative value represents a discount, which means the average property is selling below its historical implied price.
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Three of the real estate markets expected to be the hottest next year are in the top 10 most overpriced markets – Boise with 78.36% premium, Spokane with 48.94% and Salt Lake City with 47.32%. Tampa is in the top 15 at 39.94%. Indianapolis, Columbus, and Seattle all have premiums above 30%, while Greenville is just behind at 27%. Providence and Worcester have the lowest of the 10 housing markets at 14.61% and 17.44%, respectively.
According to FAU, there are only discounts on home prices in two metropolitan areas: Baltimore and urban Honolulu.
Property prices across the country rose again in October as the property market continues to boom after last year’s coronavirus recession.
Over the Christmas week, mortgage rates fell to 3.05% for the 30-year fixed rate benchmark and 2.66% for the 15-year fixed rate home loan. Persistently low interest rates signal that credit markets appear to be more concerned about the harm to economic growth from the Omikron variant than about the highest inflation rates in nearly 40 years.
The Associated Press contributed to this report.
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