Housing Values Are Expected To Rise in These Metros This Summer — Is Yours One of Them?
Housing prices in the U.S. have generally been on the rise over the past couple years, and that trend is expected to continue. According to an October 2020 report by RenoFi, housing prices in the U.S. increased 48.55% over the last decade. Though we are seeing some dips in real estate prices in some areas, many cities are experiencing a boom -- and costs there are going up.
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New research conducted by GOBankingRates, using resources from Zillow, found that home values are expected to rise in select metros this summer. At first glance, it's hard to determine what these areas have in common that may be driving an increase in each of them. But there are a few connections to be made.
"The primary driver of the rising housing prices in these areas is the limited supply of homes," said Gagan Saini, the CEO of JiT Home Buyers. "The demand for housing is high, but the supply is low. This has caused home prices to increase significantly in the past year."
The pandemic also plays a huge role here, as it "has caused people to move out of cities and into suburban areas, which has increased the demand for housing in these areas," Saini said. "This has caused prices to increase even more. Additionally, the low inventory of homes is causing competition among buyers, which is further driving up prices."
Utica, New York
April 2023 home value: $187,171
Projected home value in July 2023: $189,979
Percentage increase: 1.50%
A home in Utica, New York, will have the value of $189,979 in July. That's up $2,808 from April. According to Stacker, Utica is the 14th most expensive city in the Utica metro area.
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Kingsport, Tennessee
April 2023 home value: $200,767
Projected home value in July 2023: $203,778
Percentage increase: 1.50%
As home values rise in this city (up $3,012 in July over April), the duration of time spent on the market is shrinking. According to Rocket Homes, the average listing age in Kingsport was 761 days in May 2021. In May 2023, it was 226 days.
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Roanoke, Virginia
April 2023 home value: $256,967
Projected home value in July 2023: $260,821
Percentage increase: 1.50%
According to Rocket Homes, this city is definitely a seller's market right now. That will apparently continue through July, when the typical home value will be $3,854 more than it was in April.
Spartanburg, South Carolina
April 2023 home value: $252,444
Projected home value in July 2023: $256,230
Percentage increase: 1.50%
According to Redfin, in April 2023, homes in Spartanburg, South Carolina, median sale prices were down 2.4% compared to the previous year -- but that trend looks to be reversing itself, as experts anticipate a 1.50% increase in home values there in July.
York, Pennsylvania
April 2023 home value: $269,399
Projected home value in July 2023: $273,440
Percentage increase: 1.50%
In York, Pennsylvania, you can expect the typical home value to be $273,440 in July -- up $4,041 from April. This is the continuation of a relatively long upward trend.
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Portland, Maine
April 2023 home value: $480,653
Projected home value in July 2023: $487,863
Percentage increase: 1.50%
According to Zillow projections, the home value in Portland, Maine, in July will be $387,863 -- $7,210 more than it was just a few months earlier. This area has seen a huge uptick in population since the onset of the pandemic and is predicted to get even more popular.
El Paso, Texas
April 2023 home value: $204,721
Projected home value in July 2023: $207,792
Percentage increase: 1.50%
In El Paso, Texas, the home value is predicted to be $207,792 in July. That's up $3,071 from $204,721 in April. Home values here have been consistently going up over the past year.
McAllen, Texas
April 2023 home value: $173,838
Projected home value in July 2023: $176,446
Percentage increase: 1.50%
Over in McAllen, Texas, home values are expected to be up $2,608 in July, reaching $176,446. In April 2023, median sale prices in this area were up 11.2% compared to last year, according to Redfin.
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Albuquerque, New Mexico
April 2023 home value: $316,638
Projected home value in July 2023: $321,387
Percentage increase: 1.50%
In July, home values in Albuquerque are predicted to be $321,387 -- up $4,750. Redfin describes this city's housing market as very competitive.
Greenville, South Carolina
April 2023 home value: $275,172
Projected home value in July 2023: $279,299
Percentage increase: 1.50%
By July 2023, home values in Greenville will be $279,299 -- $4,128 more than where where they were in April. Then, Greenville home sales prices were up 4.1% compared to last year, according to Redfin.
Grand Rapids, Michigan
April 2023 home value: $305,491
Projected home value in July 2023: $310,073
Percentage increase: 1.50%
In July 2023, it is forecast that home values in Grand Rapids will be $310,073 -- $4,582 more than what home values were at in April.
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Buffalo, New York
April 2023 home value: $242,408
Projected home value in July 2023: $246,044
Percentage increase: 1.50%
In July, a home in Buffalo will be about $3,636 higher in value than it was in April 2023 -- weighing in at $246,044. This could represent a stabilization, as housing prices have been down year over year in this city.
Reading, Pennsylvania
April 2023 home value: $266,820
Projected home value in July 2023: $271,089
Percentage increase: 1.60%
In Reading, a typical home will be valued at $271,089 in July -- $4,269 more than it was at in April 2023. Home sale prices were already up 11.6% compared to last year, according to Redfin.
Harrisburg, Pennsylvania
April 2023 home value: $265,238
Projected home value in July 2023: $269,482
Percentage increase: 1.60%
In Harrisburg, a typical home will be valued at $269,482 in July -- $4,244 more than it was valued at in April 2023. This increase won't offset just how dramatically sale prices fell year over year in April, when they were down 11.9%, according to Redfin.
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Syracuse, New York
April 2023 home value: $201,159
Projected home value in July 2023: $204,377
Percentage increase: 1.60%
Projections show that the typical home in Syracuse will be valued at $3,219 more in July than it was in April, landing at $204,377. This is the continuation of a sharp incline. In April, Syracuse home sale prices were up 14.9% compared to last year, according to Redfin.
Knoxville, Tennessee
April 2023 home value: $310,903
Projected home value in July 2023: $315,877
Percentage increase: 1.60%
This is another city that doesn't exactly "need" the increase in value to flourish.
"Knoxville, Tennessee, was never able to recover itself from the scenario of underbuilt housing back in the great recession of 2008," said Theresa Raymond, a real estate professional and broker. "It is one of the biggest reasons why the prices around here are always expensive. In Knox County, since then the building permits per capita depreciated by 49% over the years. Following that, home prices are to increase more this summer."
A typical abode in Knoxville will be valued at $315,877 this July, up $4,974 from what it was valued at in April.
Wilmington, North Carolina
April 2023 home value: $407,766
Projected home value in July 2023: $414,698
Percentage increase: 1.70%
Wilmington, North Carolina, is an area that is experiencing higher-than-normal demand for housing -- driven by a few factors.
"Wilmington is in New Hanover County, which sits in the lower 20% of property tax rates in the state," said Matthew Ricci, a home loan specialist for Churchill Mortgage, who specializes in the North Carolina market. "It also has close access to many beaches and the coast. In addition, Wilmington is within 50 miles of Camp Lejeune. So, while Wilmington's supply vs. demand curve is certainly driven by the national macro factors mentioned above, it also has historically high demand due to the convenience, location and low property tax alternative it provides."
A typical home in Wilmington is projected to be valued at $414,698 in July, up by $6,932.
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Myrtle Beach, South Carolina
April 2023 home value: $365,778
Projected home value in July 2023: $371,996
Percentage increase: 1.70%
The typical home in Myrtle Beach is projected to be valued at $371,996 in July, up $6,218 from just a few months prior. In April 2023, Myrtle Beach home sale prices were already up significantly -- 9.2% compared to the previous year, according to Redfin.
Savannah, Georgia
April 2023 home value: $302,625
Projected home value in July 2023: $308,375
Percentage increase: 1.90%
In Savannah, Georgia, July will usher in the typical home value of $308,375 -- up $5,750 and 1.90% from April. At that time Savannah home sale prices were up 6.8% compared to last year, according to Redfin.
Springfield, Missouri
April 2023 home value: $244,444
Projected home value in July 2023: $249,088
Percentage increase: 1.90%
In July, the typical home value in Springfield will be $249,088, up $4,644 from the value in April. This area has been a strong seller's market for the past year, according to Rocket Homes.
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Winston, North Carolina
April 2023 home value: $249,818
Projected home value in July 2023: $254,565
Percentage increase: 1.90%
An increase of about $4,747 in the typical home value is expected for the Winston market this July. That means the home value there will be $254,565. In April 2023, Winston-Salem home sale prices were up 2.1% compared to April 2022, according to Redfin.
Topeka, Kansas
April 2023 home value: $191,674
Projected home value in July 2023: $195,890
Percentage increase: 2.20%
This July, Topeka will see the typical home value go up to $195,890, representing a $4,217 increase from April, when home sale prices were already up 11% compared to last year, according to Redfin.
Rochester, New York
April 2023 home value: $227,055
Projected home value in July 2023: $232,050
Percentage increase: 2.20%
Also seeing a pretty significant jump in value is the Rochester market, where the typical home value in July is projected to be $232,050 -- up $4,995 from April. Nicholas McMillan, founder and owner of Hire Realty LLC, attributes this soaring in price to a powerful job sector, increasing demand among millennials and Gen Zers and the extensive home improvements often required before a home hits the market.
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Methodology: For this piece GOBankingRates used Zillow's April 2023 data to find the following for the 250 largest housing markets by metro: (1) April 2023 home value; (2) projected growth rate for home value to July 2023; (3) projected home value for July 2023; and (4) change in home value from April 2023 to July 2023. Only those metros with a 1.5% projected or more home value growth were included in the final rankings. All data was collected and is up to date as of May 31, 2023.
This article originally appeared on GOBankingRates.com: Housing Values Are Expected To Rise in These Metros This Summer — Is Yours One of Them?
