Housing market growth, conceptual vector illustration, EPS 8

Real Estate Market Booms in US Cities in 2017

Since 2008 when the housing market took a turn for the worse the market has really started to turn it’s self around. Focusing on pure statistics on median home sales prices from YOY (year over year) sales from 2016 to present 2017. The name of the game is data and stats depending on what data is used it can generate different results. Know this when reviewing any data driven information. If you look at the percentage of increase is sales of the total value over the percentage of value the stats completely change. We are focusing on the increase by percentage of the sale prices of homes from 2016 to 2017.

RANK BY LARGEST INCREASE YOY PERCENTAGE 2016 to 2017

Rank City Median House Price 2017 Median House Price 2016 Increase from 2016 Median Price Increase from 2016 to 2017
1 Palm Bay, Fla. $140,000 $121,739 15.00% $18,261
2 Cape Coral, Fla. $177,000 $156,915 12.80% $20,085
3 Detroit, Mich. $147,000 $130,667 12.50% $16,333
4 Denver, Colo. $302,000 $269,643 12.00% $32,357
5 Sarasota, Fla. $192,000 $171,889 11.70% $20,111
6 Pittsburgh, Pa. $157,000 $140,807 11.50% $16,193
7 Grand Rapids, Mich. $140,000 $126,582 10.60% $13,418
8 Seattle, Wash. $370,000 $334,539 10.60% $35,461
9 Miami, Fla. $210,000 $190,736 10.10% $19,264
10 Dallas, Tex. $129,700 $117,909 10.00% $11,791
11 Stockton, Cal. $267,000 $242,727 10.00% $24,273
12 Deltona, Fla. $135,000 $123,063 9.70% $11,937
13 Modesto, Cal. $239,000 $218,066 9.60% $20,934
14 San Jose, Cal. $816,000 $745,887 9.40% $70,113
15 Atlanta, Ga. $180,000 $164,986 9.10% $15,014
16 Salt Lake City, Utah $248,500 $227,773 9.10% $20,727
17 Tampa, Fla. $140,400 $128,807 9.00% $11,593
18 San Francisco, Cal. $700,000 $643,382 8.80% $56,618
19 Houston, Tex. $162,500 $149,494 8.70% $13,006
20 Lakeland, Fla. $119,950 $110,553 8.50% $9,397

*Stats Derived by Data from Kiplinger.com

 

Just to show how different data can be compiled, here is the exact same data but ranked according to increase in dollar over dollar sales figures. Note that the ranks change and not all the same cities are now represented on the top 20 chart.

RANK BY LARGEST INCREASE YOY DOLLAR VALUE 2016 to 2017

Rank City Median House Price 2017 Median House Price 2016 Increase from 2016 Median Price Increase from 2016 to 2017
1 San Jose, Cal. $816,000 $745,887 9.40% $70,113
2 San Francisco, Cal. $700,000 $643,382 8.80% $56,618
3 Los Angeles, Cal. $530,000 $492,565 7.60% $37,435
4 Seattle, Wash. $370,000 $334,539 10.60% $35,461
5 Santa Rosa, Cal. $493,000 $457,753 7.70% $35,247
6 Denver, Colo. $302,000 $269,643 12.00% $32,357
7 San Diego, Cal. $460,000 $432,738 6.30% $27,262
8 Honolulu, Hi. $466,000 $440,454 5.80% $25,546
9 Stockton, Cal. $267,000 $242,727 10.00% $24,273
10 Oxnard, Cal. $507,500 $485,182 4.60% $22,318
11 Portland, Ore. $289,900 $267,930 8.20% $21,970
12 Sacramento, Cal. $305,000 $283,985 7.40% $21,015
13 Modesto, Cal. $239,000 $218,066 9.60% $20,934
14 Salt Lake City, Utah $248,500 $227,773 9.10% $20,727
15 Sarasota, Fla. $192,000 $171,889 11.70% $20,111
16 Cape Coral, Fla. $177,000 $156,915 12.80% $20,085
17 New York, N.Y. $375,000 $355,114 5.60% $19,886
18 Miami, Fla. $210,000 $190,736 10.10% $19,264
19 Palm Bay, Fla. $140,000 $121,739 15.00% $18,261
20 San Bernardino, Cal. $276,000 $257,944 7.00% $18,056

*Stats Derived by Data from Kiplinger.com

 

PALM BAY, FL

Ranked No. 1 Palm Bay, Florida has a population of roughly 110,000 people. The city is located on the Atlantic side of the Florida peninsula. Palm Bay’s 2016 home values went from $121K to $140K in 2017, roughly an $18K increase. This growth is a 15% YOY increase.  Palm Bay’s unemployment rate is 3.5% as of October 2017 according to the Bureau of Labor and Statistics. Palm Bay’s increase in real estate sales may be due to being the second largest city in Florida according to square miles, and its proximity to other cities like Orlando, Viera and Vero Beach and the home prices are reasonable.

CAPE CORAL, FL

Ranked No. 2 Cape Coral, Florida has a population of roughly 180,000 people. The city is located on the Gulf side of the Florida peninsula. Cape Coral’s 2016 home values went from $157K to $177K roughly a $20K increase in 2017. This growth is a 12.8% YOY increase. Cape Coral’s unemployment rate is 3.3% as of October 2017 according to the Bureau of Labor and Statistics. Cape Coral’s increase in real estate sales may be due to job growth. In the beginning of 2017 Cape Coral was ranked #4 in the nation for job growth.

DETROIT, MI

Panorama of the Detroit, Michigan SkylineRanked No. 3 Detroit, Michigan has a population of roughly 670,000 people. The Motor City is located on the Southeastern tip of the palm of Michigan. Detroit’s 2016 home values went from $130K to $147K roughly an $18K increase in 2017. This growth is a 12.5% YOY increase. Detroit unemployment rate is 4.2% as of October 2017 according to the Bureau of Labor and Statistics. Detroit’s real estate market is HOT because it was one of the cities that took a brutal hit during the recession created by the housing market crash in 2008. Many investors saw this fall in real estate as an opportunity. Recently Forbes.com rated Detroit as the number one of the most underrated real estate market in the nation.

DENVER, CO

Downtown Denver, Colorado at the morning as seen from City ParkRanked No. 4 Denver, Colorado has a population of roughly 693,000 people. The Mile High City is located east of the Rocky Mountains Front Range. Denver’s 2016 home values went from $270K to $302K roughly a $32K increase in 2017. This growth is a 12% YOY increase. Denver’s unemployment rate is 2.6% as of October 2017 according to the Bureau of Labor and Statistics. Denver’s real estate market growth in sales may be due to the lack of inventory of available homes. Buyers should be prepared to buy and write and offer before even attending an open house or scheduling showings for new homes on the market. This could be a simple supply and demand issue, but knowing that troves of people have decided to move to the state because of their legalization of marijuana, should not be discounted. This legalization has created a new job market and unique advantage over other states to live in.

SARASOTA, FL

Ranked No. 5 Sarasota, Florida has a population of roughly 57,000 people. Sarasota is located on the gulf side of the Florida peninsula. Sarasota’s 2016 home values went from $172K to $192K roughly a $20K increase in 2017. This growth is an 11.7% YOY increase. Sarasota’s unemployment rate is 3.2% as of October 2017 according to the Bureau of Labor and Statistics. Sarasota, much like all Florida cities on this list has fantastic weather, but Sarasota has the total package when it comes to home real estate in 2017, with “critical infrastructure – the arts, great schools, small to medium-size companies, small universities” according to Florida Realtor, Robert Anderson with RE/MAX.

PITTSBURGH, PA

Ranked No. 6 Pittsburgh, Pennsylvania has a population of roughly 304,000 people. The Steel City is located on the western part of the state of Pennsylvania. Pittsburgh’s 2016 home values went from $141K to $157K roughly a $16K increase in 2017. This growth is an 11.5% YOY increase. Pittsburgh’s unemployment rate is 4.1% as of October 2017 according to the Bureau of Labor and Statistics. Pittsburgh flipping market or real estate investment market is one of the top in the nation with an average of 55% gross profit per flip when it comes to buying and selling foreclosures.

GRAND RAPIDS, MI

Ranked No. 7 Grand Rapids, Michigan has a population of roughly 196,000 people. Grand Rapids is located on the west central part of the state. Grand Rapids’ 2016 home values went from $126K to $140K roughly a $13K increase in 2017. This growth is a 10.6% YOY increase. Grand Rapids ‘s unemployment rate is 3.4% as of October 2017 according to the Bureau of Labor and Statistics. Grand Rapids market is hot due to the economics of the area being low inventory and affordability.

SEATTLE, WA

Seattle skyline with Mount Rainier in the background during sunset.Ranked No. 8 Seattle, Washington has a population of roughly 705,000 people. Seattle is located on the Pacific coast. Seattle’s 2016 home values went from $334K to $370K roughly a $35K in 2017. This growth is a 10.6% YOY increase. Seattle’s unemployment rate is 3.5% as of October 2017 according to the Bureau of Labor and Statistics. Seattle’s spike in real estate sales is again economics, however this supply and demand also involves a lack of undeveloped land for builders to create new housing developments. So this supply and demand problem means the SUPPLY in this equation can not increase due to being at capacity, so unless people decide to move out of the city to suburbs the inventory will not increase. The low inventory also be due to the HOT companies that are located in Seattle like Microsoft, Costco and Boeing just to name a few.

MIAMI, FL

Aerial View or Miami Beach, condo units and art deco buildings with ocean view.Ranked No. 9 Miami, Florida has a population of roughly 455,000 people. Miami is located on the Atlantic side of the Florida on the southern tip of the peninsula. Miami’s 2016 home values went from $191K to $210K roughly a $19K increase in 2017. This growth is a 10.1% YOY increase. Miami’s unemployment rate is 3.9% as of October 2017 according to the Bureau of Labor and Statistics. Even with the threat of climate change bearing down on Miami the real estate market is still hot. Adding a home warranty to the sale of your Miami home can increase the sales price and perceived value of the home even if it is on the beach. Miami Beach isn’t the hottest part of the city anymore; it is possibly the most overvalued real estate in the city. The increase has condos apartments and single family homes all in the statistical data, so while overpriced homes on the water may sit, a single family home off the water is HOT.

DALLAS, TX

Ranked No. 10 Dallas, Texas has a population of roughly 1,300,000 people. Dallas is located in northeast Texas. Dallas’s 2016 home values went from $118K to $130K roughly a $12K increase in 2017. This growth is a 10% YOY increase. Dallas’s unemployment rate is 3.0% as of October 2017 according to the Bureau of Labor and Statistics. Dallas has a solid economic forecast and strong demographic trends based on homes still being affordable.

STOCKTON, CA

Ranked No. 11 Stockton, California has a population of roughly 307,000 people. Stockton is located in central California in San Joaquin Valley. Stockton’s 2016 home values went from $243K to $267K roughly a $24K increase in 2017. This growth is a 10.0% YOY increase. Stockton’s unemployment rate is 6.2% as of October 2017 according to the Bureau of Labor and Statistics. Stockton’s rise in real estate market trends may have something to do with the Bay area being TOO HOT and home buyers are looking outside of the bay for a more affordable housing option.

DELTONA, FL

Ranked No. 12 Deltona, Florida has a population of roughly 90,000 people. Deltona is located on the Atlantic side of the Florida. Deltona’s 2016 home values went from $123K to $135K roughly a $12K increase in 2017. This growth is a 9.7% YOY increase. Deltona‘s unemployment rate is 3.7% as of October 2017 according to the Bureau of Labor and Statistics. Deltona market rise could be due to the job growth in the area being ranked number 3 in the state of Florida.

MODESTO, CA

Ranked No. 13 Modesto, California has a population of roughly 212,000 people. Modesto is in central California in the Central Valley. Modesto’s 2016 home values went from $218k to $239K roughly a $21K increase in 2017. This growth is a 9.6% YOY increase. Modesto’s unemployment rate is 6.3% as of October 2017 according to the Bureau of Labor and Statistics. Modesto is in great proximity to city life in San Francisco, without the crazy home prices. It is also close to Yosemite National Park and Lake Tahoe, giving its residents multiple opportunities for life balance between nature and urban entertainment.

SAN JOSE, CA

Ranked No. 14 San Jose, California has a population of roughly 1,025,000 people. San Jose is the capital of Silicon Valley and just is located in central California’s Bay Area. San Jose’s 2016 home values went from $746K to $816K roughly a $70K increase in 2017. This growth is a 9.4% YOY increase. San Jose’s unemployment rate is 3.0% as of October 2017 according to the Bureau of Labor and Statistics. San Jose is located in Santa Clara County, which is the most affluent county in California and among the top in the nation. The innovative companies in San Jose are likely a leading cause for the increase in the real estate market. Notable companies in San Jose are PayPal, Adobe, eBay and Cisco.  While still listed as a top increase from 2016 San Jose’s market has slowed in October, analysts believe it is due to having a bit more inventory on the market that they are used to having.

ATLANTA, GA

Skyline of downtown Atlanta, Georgia, USARanked No. 15 Atlanta, Georgia has a population of roughly 472,000 people. Atlanta is the capital of Georgia located in the northwestern part of the state. Atlanta’s 2016 home values went from $165K to $180K roughly a $15K increase in 2017. This growth is a 15% YOY increase. Atlanta’s unemployment rate is 4.1% as of October 2017 according to the Bureau of Labor and Statistics. “The development of nearby SunTrust Park home for the Atlanta Braves makes Smyrna very appealing to younger buyers looking to stay close to the city,” per RE/MAX realtor, Kristen Jones. Atlanta’s Hartsfield-Jackson International Airport is also the busiest airport in the world and recently took that title from the Chicago O’Hare International Airport.

SALT LAKE CITY, UT

Panoramic sunset of Salt Lake City with snow capped Wasatch MountainsRanked No. 16 Salt Lake City, Utah has a population of roughly 192,000 people. Salt Lake City is the capital of Utah. Salt Lake City’s 2016 home values went from $228K to $248K roughly a $21K increase in 2017. This growth is a 9.1% YOY increase. Salt Lake City’s unemployment rate is 2.8% as of October 2017 according to the Bureau of Labor and Statistics. Salt Lake City has good job growth and a strong economy making it a favorable place to live. According to FortuneBuilders.com Salt Lake City is nearly two times the national average for job growth.

TAMPA, FL

Ranked No. 17 Tampa, Florida has a population of roughly 377,000 people. Tampa is located inland on the gulf side of the Florida peninsula. Tampa’s 2016 home values went from $129K to $140K roughly an $11K increase in 2017. This growth is a 9.0% YOY increase. Tampa’s unemployment rate is 3.3% as of October 2017 according to the Bureau of Labor and Statistics. It’s not just the weather that’s hot in Tampa. Tampa has seen less new construction for residential homes spurring sale prices of existing homes to climb.

SAN FRANCISCO, CA

San Francisco, California, USA city skyline.Ranked No. 18 San Francisco, California has a population of roughly 870,000 people. San Francisco is located on southern part of the bay on the north end of the San Francisco Peninsula. San Francisco’s 2016 home values went from $643K to $700K roughly a $57K increase in 2017. This growth is an 8.8% YOY increase. San Francisco’s unemployment rate is 3.0% as of October 2017 according to the Bureau of Labor and Statistics. San Francisco has always been hot on the real estate market for decades. Like many evergreen hot real estate markets San Francisco is all about supply and demand and there is never enough supply in the bay area.

HOUSTON, TX

Downtown Houston skyline in Texas USA at twilight

Ranked No. 19 Houston, Texas has a population of roughly 2,300,000 people. Houston is located in the southeastern park of Texas near the Gulf of Mexico. Houston’s 2016 home values went from $150K to $162K roughly a $12K increase in 2017. This growth is an 8.7% YOY increase. Houston’s unemployment rate is 4.1% as of October 2017 according to the Bureau of Labor and Statistics. Buying a home warranty in Houston, can help increase the value of your property. After Hurricane Harvey one would think that the housing market would have suffered, but this hasn’t been the case for Houston. Even after the storm the real estate market remains hot. This could be because there’s less inventory due to damaged homes. Along with previously occupied homes being damaged residents may be displaced causing more of a frenzy in trying to land a new home.

LAKELAND, FL

Ranked No. 20 Lakeland, Florida has a population of roughly 107,000 people. Lakeland is located on the in the central part of Florida’s peninsula. Lakeland’s 2016 home values went from $110K to $120K roughly a $9K increase in 2017. This growth is an 8.5% YOY increase. Lakeland’s unemployment rate is 4.0% as of October 2017 according to the Bureau of Labor and Statistics. Lakeland has an above the national average for education level among its residents. This area has a good mix of blue-collar and white-collar jobs as well as being ethnically diverse.

RECAP

While many homeowners still feel the sting from the 2008 housing recession it is clear that many homeowners are seeing the light at the end of the tunnel. If your home value decreased greatly during the recession and you were able to hold on to your home despite the negative equity you are a lucky one. While many lost their homes, this supply of less expensive homes has created a hot market for buyers and investors to snatch up the real estate and now almost a decade later the market is showing it can bounce back. While this doesn’t recoup all losses from the recession it is a clear sign that the housing market will not always constantly increase like previously believed by market analyst, but that it will fluctuate just like any other economic market.

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