
New Markets Emerge As Previous Market Winners Lose Ground
The pandemic brought about huge market surges in metro markets that became hot spots, especially in the sunbelt metro regions of the U.S. Redfin’s latest report on housing shows that some of these winners are losing ground and new markets are begging to emerge as rates have increased from the pandemic lows of sub 3% to reach levels as high as 7% this year.
Anna Cottrell contributor of BiggerPockets discusses this in her article stating:
First-time homebuyers eager to realize their dream of homeownership created the trend of moving towards up-and-coming cities like Phoenix and Austin, creating housing hotspots. In 2021, Austin was suddenly one of the most in-demand and increasingly unaffordable metro areas in the United States. Home price growth in some popular relocation destinations reached dizzying double-digit numbers. Las Vegas, for example, saw home price growth rates of 31% year-over-year in February 2022.
Now, according to October data, home prices in Las Vegas are growing at the rate of 6.8%. This is still high, but the cooling-off factor is marked. The same is happening across all of the pandemic hotspots, including Phoenix, Boise, Austin, and Colorado Springs. Popular Californian destinations such as Sacramento and San Jose have also suffered, with San Jose hit the hardest. Prices there actually declined by -1% year-over-year in October 2022.
Anna further goes on to discuss places like Albany, New York, and McAllen Texas as becoming the next best markets. Read her full article below.