Which summer real estate markets dominated in 2016?
The real estate market has enjoyed a tremendous first-half so far in 2016. What began as a sultry spring selling season has blossomed into a sensational summer, as real estate markets from June to August have experienced some of the biggest gains since before the recession. According to Realtor.com, here are the numbers from this year’s summer real estate markets:
- Home sales in the first-half of 2016 have increased five percent compared to the the first half of 2015.
- Sales in June were up 25.4 percent compared to the same period in 2015. The median sale price of new homes sold in June was $306,700, a 6.1 percent increase from a year ago.
- The rise of millennial homebuyers continues to increase. Compared to July 2015, which saw 75 percent of 25-to-34-year-olds looking to buy a home, this year that percentage increased to 81 percent.
- July 2016 recorded its highest nominal home prices for a July in history; the lowest July unemployment figures since 2007; and lowest mortgage rates ever.
- The median home price for homes listed on Realtor.com in August was $250,000, an eight percent increase from 2015.
“Realtor.com’s traffic growth has been particularly strong in August, even surpassing record highs set in July, making this an extended summer with unprecedented interest in buying,” said Realtor.com Chief Economist, Jonathan Smoke.
The best summer real estate markets in 2016 are based on a combination of median home prices and median number of days spent on the market. With the spring selling season over, and summer rapidly coming to a close, here are the top 10 summer real estate markets of 2016:
Top 10 Summer Real Estate Markets 2016
Don’t forget that the best real estate investing markets are contingent on the real estate investing strategies used in each respective area. Which investment strategies would you use in the following cities?
10. Charlotte, North Carolina
The Charlotte real estate market continues its hot streak, as it remains one of the hottest summer real estate markets in 2016. Along with the median list price growing by 6.7 percent, compared to the previous year, employment gains in the Charlotte area have increased by almost four percent year-over-year.
“Momentum is finally shifting back toward the new home market, particularly in the South, which has seen sales and new construction take off this year as job growth and in-migration have strengthened,” Mark Vitner, a senior economist at Wells Fargo Securities in Charlotte, told Reuters.
The Charlotte real estate market remains on the forefront in terms of home affordability, new housing construction, and employment rates.
9. Atlanta, Georgia
Since the recession, the Atlanta real estate market has been on fire. The median home price in Atlanta has grown 6.2 percent, with median listing prices up five percent year-over-year, while appreciation rates rose 6.2 percent during the same period — more than the national average. That said, the three-year home appreciation rate for the Atlanta real estate market is almost double the national average, with home equity in Atlanta growing 45.8 percent compared to 22.6 percent.
As one of the hottest summer real estate markets in 2016, including top housing markets for residential redevelopment, Atlanta continues to be a hotbed for job growth and it should continue in the second-half of the year.
8. Portland, Oregon
Nestled in the great Northwest, the Portland real estate market continues to sizzle. Although mild slowing for home sales occurred during the month of July, the median home price increased to $391,000, an 11.4 percent increase from the previous year. In addition, homes on the market during July took roughly 30 days to sell — two weeks faster than the same period in 2015.
7. Seattle, Washington
As one of the fastest growing cities in the last five year, Seattle remains ranked as number one for combined job and wage growth in the country. That said, the Seattle real estate market continues to stay red-hot. Despite the number of available homes for sale in Seattle dropping 13 percent year-over-year, the median home prices for Seattle real estate is $505,000, a 15 percent increase over the past 12 months.
6. Dallas, Texas
The Dallas real estate market continues to gain ground in 2016 — especially this summer selling season. In fact, homes in Dallas continue to appreciate as unprecedented levels, with one-year appreciation rates rising to 9.1 percent in Q1, compared to the national average of 6.1 percent. However, the highlight of Dallas continues to be job opportunities, which has increased immensely this summer 2016. That said, the Dallas real estate market has the necessary components to finish the year strong in 2016.
5. Boston, Massachusetts
As one of the best cities to own a home, the Boston real estate market continues to fire on all cylinders this summer as the median home price for Boston real estate was $378,500 during the first quarter of 2016, compared to the national average of $215,767. Along with home affordability, which continues to improve, the Boston economy in the last three years has improved at a rate of 14.2 percent, whereas the national average was only 10.5 percent.
4. San Diego, California
It doesn’t get much hotter than the San Diego real estate market. The median home price for San Diego real estate during the first quarter of 2016 was $554,300 — almost double the national average, and homes in San Diego continue to appreciate as record pace. That said, the economy in San Diego is better than most, as the one-year growth rate during Q1 was 5.3 percent for San Diego, while unemployment was 4.5 percent.
3. Denver, Colorado
The Denver real estate market continues to catch fire in 2016, and this summer was no different. As one of the more stable markets in the U.S., the Mile High City has enjoyed a combination of rising appreciation rates, improved employment rates, and increases in new housing construction, with the first quarter of 2016 achieving a median home price of $369,000. That said, Denver was also one of the top five metropolitan areas with the shortest amount of time on market. During June, homes in Denver were on the market for an average of 30 days.
2. Los Angeles, California
The City of Angels has quickly become one of the more prosperous housing markets in California. With a growing population of 11 million, the median home price for the Los Angeles real estate market was $458,900 during the first quarter of 2016 — almost double the national average. In addition to a growing economy and unemployment rates below the national average, the Los Angeles real estate market is poised to continue its dominance in the second-half of 2016.
1. San Francisco, California
The hottest summer real estate market in 2016 is, without a doubt, San Francisco. A booming tech industry has cultivated one of the busiest and most expensive real estate markets in recent memory. Unemployment rates in San Francisco are also on the decline; From June 2016 to July 2016, the total number of jobs in the San Francisco area increased by 1,3000 jobs to a total of 1,084,900.
The San Francisco real estate market remains one of the most expensive areas for renters. The city ranks number two in the top 10 U.S. cities with the highest rent, trailing only New York.