Best house market in us
10 Best Real Estate Markets In 2022
5. Charlotte, North Carolina
- Median listing price: $385,000
- Time on market: 35
Charlotte continues to be one of the top places to live in North Carolina with access to mountains and beaches alike. The cost of living in Charlotte is 5% lower than the national average leaving room for outdoor lovers to experience this beautiful state in all its glory. Charlotte is also experiencing job growth with a 45.2% increase expected over the next 10 years. Top companies headquartered in Charlotte includes Bank of America, Wells Fargo, Amazon, LendingTree and more.
6. San Antonio, Texas
- Median listing price: $285,000
- Time on market: 55 days
San Antonio is currently a buyer’s market, so if you’re looking to become a homeowner in one of the best places to live in Texas, now is the time. This city also offers plenty of fun activities and history to enjoy. San Antonio is rich in Spanish and Old West heritage as it is most famously known as the home of the Alamo. With over 300 days of sunshine per year, residents can expect consistent great weather.
According to a new report from the U.S. Census Bureau, San Antonio is the nation’s eighth fastest-growing metro. The state is also experiencing an increase in six-figure jobs in the San Antonio – New Braunfels metro region.
7. Phoenix, Arizona
- Median listing price: $459,000
- Time on market: 35 days
- Home value increase (over pre-pandemic levels): 30%
Phoenix home values have increased an astonishing amount over the last year – close to 30%. This increase is largely due to demand from a sudden influx of home buyers: remote workers and retirees who want more space for the money. While home prices are slightly above the national average, data from Payscale shows the cost of living in Phoenix is 5% below average, meaning your dollars will go further.
A six-figure home price jump is enough to put Phoenix on the list of “hottest” real estate markets, but the largest town in Arizona has a lot to offer residents. With increasing tech jobs (Amazon, Uber, Shutterfly and Yelp have offices in Phoenix), over 200 golf courses, along with restaurants and nightlife, it’s easy to see why many move to Phoenix.
8. Jacksonville, Florida
- Median listing price: $289,900
- Time on market: 42 days
- Home value increase (over pre-pandemic levels): 5%
Jacksonville, Florida may not ring any bells when you think of a “major metro area,” but Jacksonville is actually one of the fastest-growing economic areas in the country, with over one million residents in the metro area. Jacksonville’s growth is attributed to its strong job growth, as employment opportunities continue to steadily increase month over month.
Jacksonville is also incredibly affordable with the current Jacksonville cost of living at 5% below the national average, and the median list price of properties well below national averages. In this area, the average price per square foot on a three-bedroom, two-bath single family home is a comfy $182 per square foot.
9. Atlanta, Georgia
- Median listing price: $400,000
- Time on market: 41
As the economic and cultural hub of Georgia, Atlanta continues to grow year after year, bringing more and more people to the city. With Atlanta’s cost of living just 1% lower than the national average, residents will have plenty of job opportunities in a variety of sectors (financial, real estate, medical, etc.). Not to mention, several Fortune 500 companies call this city home, including The Coca Cola Company, The Home Depot, Delta Air Lines and more.
10. Orlando, Florida
- Median listing price: $350,000
- Time on market: 39
With the cost of living in Orlando 5% lower than the national average, this city continues to rank as one of the best places to live in Florida. Orlando is also one of the top vacation spots in the U.S. with temperatures rarely falling under 60 degrees. Residents of this city also don’t have to pay personal income tax or sales income tax, which can save people a lot of money year after year.
While Orlando is known for its amusement parks, finding your own pocket of sunshine isn’t hard to come by with over 100 lakes less than an hour away (not to mention spacious golf courses and shopping centers).
The Top 100 Hottest US Housing Markets in 2022
Updated Nov 8, 2022
Updated Nov 8, 2022
The housing market has exploded in recent years due to fluctuating mortgage rates, high demand accompanied by low inventory, as well as remote working opportunities allowing millions to rethink their home base. Americans have begun to rethink their priorities in a living space, many prioritizing space and comfort while others have flocked to bustling metropolises, leading to an exponential increase in home ownership.
Whether you are interested in selling your home for a large profit or researching the most friendly market for first time home buying, House Method conducted a study to rank the hottest (and some of the cooler) housing markets in the U.S.
We analyzed data on the 100 largest MSA’s (Metropolitan Statistical Areas) and ranked them according to seven factors, such as affordability, inventory and population growth. Read on for the complete rankings and explanation of the methodology behind this study.
Here are some of our most interesting findings:
- Home prices increased by an average of 21% since 2021
- The top 10 markets rarely have listings sit on the market for more than 15 days, 40% less than the national average (25 days).
- Many of the hottest housing markets are also some of the least affordable as demand increases and inventory decreases
- Home equity has skyrocketed, allowing sellers to make huge profits
- Home prices are projected to increase another 14. 9% before 2023, even with steep mortgage rate increases
Main Findings
Below you’ll find the cities where homes are flying off the market fastest in ranked order, showing the rank, total score, and specific factor-category rank.
Rank | MSA | Overall Score | Affordability Rank | Inventory Rank | Population Growth Rank |
1 | Tampa-St. Petersburg-Clearwater, Fla. | 38.21 | 67 | 6 | 26 |
2 | Phoenix-Mesa-Scottsdale, Ariz. | 36.71 | 73 | 14 | 13 |
3 | Austin-Round Rock, Texas | 36.66 | 82 | 4 | 11 |
4 | Seattle-Tacoma-Bellevue, Wash. | 36.42 | 93 | 30 | 18 |
5 | San Jose-Sunnyvale-Santa Clara, Calif. | 36. 28 | 99 | 75 | 65 |
6 | Raleigh, N.C. | 36.27 | 58 | 19 | 15 |
7 | Charlotte-Concord-Gastonia, N.C.-S.C. | 36.22 | 51 | 12 | 14 |
8 | Cape Coral-Fort Myers, Fla. | 36.04 | 77 | 20 | 16 |
9 | Las Vegas-Henderson-Paradise, Nev. | 35.86 | 79 | 16 | 35 |
10 | Salt Lake City, Utah | 35.84 | 70 | 76 | 60 |
11 | San Francisco-Oakland-Hayward, Calif. | 35.67 | 100 | 32 | 51 |
12 | Lakeland-Winter Haven, Fla. | 35.64 | 45 | 50 | 10 |
13 | Colorado Springs, Colo. | 35.27 | 66 | 80 | 30 |
14 | San Diego-Carlsbad, Calif. | 35.2 | 96 | 33 | 54 |
15 | Charleston-North Charleston, S. C. | 35.16 | 78 | 42 | 8 |
16 | Nashville-Davidson–Murfreesboro–Franklin, Tenn. | 34.91 | 64 | 27 | 41 |
17 | Indianapolis-Carmel-Anderson, Ind. | 34.84 | 30 | 37 | 56 |
18 | Orlando-Kissimmee-Sanford, Fla. | 34.82 | 62 | 17 | 24 |
19 | Boise City, Idaho | 34.77 | 87 | 68 | 49 |
20 | Portland-Vancouver-Hillsboro, Ore.-Wash. | 34.6 | 84 | 47 | 38 |
21 | Dallas-Fort Worth-Arlington, Texas | 34.57 | 53 | 5 | 43 |
22 | Columbus, Ohio | 34.5 | 32 | 52 | 31 |
23 | Stockton-Lodi, Calif. | 34.14 | 86 | 95 | 59 |
24 | Los Angeles-Long Beach-Anaheim, Calif. | 34.02 | 97 | 9 | 66 |
25 | Riverside-San Bernardino-Ontario, Calif. | 33.88 | 85 | 13 | 47 |
26 | Atlanta-Sandy Springs-Roswell, Ga. | 33.81 | 50 | 23 | 23 |
27 | Spokane-Spokane Valley, Wash. | 33.75 | 69 | 94 | 50 |
28 | North Port-Sarasota-Bradenton, Fla. | 33.51 | 83 | 26 | 17 |
29 | Deltona-Daytona Beach-Ormond Beach, Fla. | 33.49 | 71 | 31 | 9 |
30 | Jacksonville, Fla. | 33.22 | 72 | 21 | 37 |
31 | Dayton, Ohio | 33.18 | 10 | 64 | 5 |
32 | Durham-Chapel Hill, N.C. | 33.09 | 76 | 83 | 20 |
33 | Denver-Aurora-Lakewood, Colo. | 33.04 | 75 | 29 | 21 |
34 | Grand Rapids-Wyoming, Mich | 32.5 | 33 | 65 | 58 |
35 | Richmond, Va. | 32.36 | 38 | 46 | 36 |
36 | Detroit-Warren-Dearborn, Mich | 32.26 | 26 | 10 | 100 |
37 | Cincinnati, Ohio-Ky.-Ind. | 32.19 | 21 | 41 | 69 |
38 | Portland-South Portland, Maine | 32.01 | 81 | 97 | 71 |
39 | Miami-Fort Lauderdale-West Palm Beach, Fla. | 31.93 | 91 | 3 | 27 |
40 | Chattanooga, Tenn.-Ga. | 31.84 | 36 | 72 | 55 |
41 | Sacramento–Roseville–Arden-Arcade, Calif. | 31.58 | 89 | 44 | 39 |
42 | Fresno, Calif. | 31.5 | 74 | 90 | 57 |
43 | Wichita, Kan. | 31.49 | 13 | 88 | 76 |
44 | Knoxville, Tenn. | 31.37 | 37 | 61 | 63 |
45 | Omaha-Council Bluffs, Neb. -Iowa | 31.35 | 39 | 66 | 68 |
46 | Bakersfield, Calif. | 31.35 | 61 | 39 | 22 |
47 | Minneapolis-St. Paul-Bloomington, Minn.-Wis. | 31.34 | 49 | 15 | 34 |
48 | Albany-Schenectady-Troy, N.Y. | 31.24 | 35 | 49 | 2 |
49 | Albuquerque, N.M. | 30.9 | 46 | 71 | 73 |
50 | Providence-Warwick, R.I.-Mass. | 30.88 | 80 | 84 | 81 |
51 | Madison, Wis. | 30.86 | 52 | 85 | 40 |
52 | Columbia, S.C. | 30.69 | 18 | 57 | 3 |
53 | Baltimore-Columbia-Towson, Md. | 30.53 | 40 | 25 | 95 |
54 | Oxnard-Thousand Oaks-Ventura, Calif. | 30.53 | 94 | 86 | 67 |
55 | Worcester, Mass. -Conn. | 30.47 | 68 | 96 | 80 |
56 | Hartford-West Hartford-East Hartford, Conn. | 30.34 | 44 | 89 | 1 |
57 | Springfield, Mass. | 30.27 | 48 | 78 | 61 |
58 | Kansas City, Mo.-Kan. | 30.23 | 31 | 34 | 52 |
59 | New Orleans-Metairie, La. | 30.15 | 29 | 40 | 45 |
60 | Boston-Cambridge-Newton, Mass.-N.H. | 30.03 | 92 | 69 | 44 |
61 | Virginia Beach-Norfolk-Newport News, Va.-N.C. | 30.03 | 65 | 22 | 75 |
62 | Greenville-Anderson-Mauldin, S.C. | 29.99 | 22 | 59 | 25 |
63 | Tucson, Ariz. | 29.8 | 57 | 60 | 62 |
64 | Harrisburg-Carlisle, Pa. | 29.79 | 23 | 93 | 19 |
65 | Houston-The Woodlands-Sugar Land, Texas | 29. 77 | 34 | 2 | 46 |
66 | St. Louis, Mo.-Ill. | 29.64 | 16 | 24 | 96 |
67 | New York-Newark-Jersey City, N.Y.-N.J.-Pa. | 29.57 | 95 | 1 | 85 |
68 | Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va. | 29.35 | 88 | 11 | 29 |
69 | New Haven-Milford, Conn. | 29.21 | 55 | 91 | 7 |
70 | Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md. | 29.19 | 41 | 7 | 70 |
71 | Louisville/Jefferson County, Ky.-Ind. | 29.08 | 19 | 51 | 72 |
72 | Oklahoma City, Okla. | 29.01 | 60 | 38 | 32 |
73 | Rochester, N.Y. | 28.87 | 6 | 73 | 92 |
74 | Scranton–Wilkes-Barre–Hazleton, Pa. | 28.84 | 7 | 74 | 6 |
75 | Allentown-Bethlehem-Easton, Pa. -N.J. | 28.53 | 25 | 58 | 12 |
76 | Tulsa, Okla. | 28.47 | 11 | 54 | 74 |
77 | Buffalo-Cheektowaga-Niagara Falls, N.Y. | 28.26 | 54 | 77 | 93 |
78 | Akron, Ohio | 28.17 | 8 | 81 | 89 |
79 | Chicago-Naperville-Elgin, Ill.-Ind.-Wis. | 28.13 | 56 | 8 | 87 |
80 | Augusta-Richmond County, Ga.-S.C. | 28.05 | 27 | 67 | 78 |
81 | San Antonio-New Braunfels, Texas | 28.03 | 42 | 18 | 28 |
82 | El Paso, Texas | 27.14 | 12 | 62 | 64 |
83 | Memphis, Tenn.-Miss.-Ark. | 27.1 | 15 | 55 | 86 |
84 | Baton Rouge, La. | 27.05 | 20 | 43 | 98 |
85 | Cleveland-Elyria, Ohio | 27. 01 | 2 | 35 | 97 |
86 | Birmingham-Hoover, Ala. | 26.29 | 24 | 45 | 94 |
87 | Toledo, Ohio | 26.25 | 4 | 82 | 99 |
88 | Pittsburgh, Pa. | 25.68 | 17 | 28 | 91 |
89 | Des Moines-West Des Moines, Iowa | 25.53 | 59 | 48 | 79 |
90 | Little Rock-North Little Rock-Conway, Ark. | 25.51 | 43 | 63 | 82 |
91 | Youngstown-Warren-Boardman, Ohio-Pa. | 24.71 | 1 | 87 | 4 |
92 | Milwaukee-Waukesha-West Allis, Wis. | 24.27 | 47 | 56 | 90 |
93 | Syracuse, N.Y. | 24.25 | 5 | 79 | 77 |
94 | Palm Bay-Melbourne-Titusville, Fla. | 21.4 | 63 | 53 | 33 |
95 | Honolulu, Hawaii | 20 | 98 | 36 | 83 |
96 | Jackson, Miss. | 19.51 | 3 | 70 | 84 |
97 | Bridgeport-Stamford-Norwalk, Conn. | 18.01 | 90 | 99 | 88 |
98 | Greensboro-High Point, N.C. | 15.03 | 28 | 98 | 42 |
99 | McAllen-Edinburg-Mission, Texas | 12.83 | 9 | 92 | 48 |
100 | Winston-Salem, N.C. | 7.57 | 14 | 100 | 53 |
Summary
Our analyses found that Tampa-St. Petersburg-Clearwater, Florida, tops the list as the hottest housing market this year. Homes are sitting on the market for the least amount of time before selling, selling for top dollar, and attracting new residents at a rapid rate. Low inventory combined with a quick sale rate contributed to its high score – and it’s important to note that many of the top spots ranked poorly for affordability.
As these hot housing markets continue to gain traction, we can assume that affordability will continue to dwindle. The other top 5 spots were rounded out by:
- Phoenix-Mesa-Scottsdale, Arizona
- Austin-Round Rock, Texas
- Seattle-Tacoma-Bellevue, Washington
- San Jose-Sunnyvale-Santa Clara, California
Jackson, Mississippi, Bridgeport-Stamford-Norwalk, Connecticut, Greensboro-High Point, North Carolina, McAllen-Edinburg-Mission, Texas and Winston-Salem, North Carolina received the lowest ranking for hottest housing markets. These markets remain cooler than those who ranked highly due to ample housing inventory and slower population growth. Although it is still a seller’s market, these MSA’s may not fly off the market quite as quickly as their high-ranking counterparts.
Methodology
To find the hottest housing markets in 2022, we looked at data for the 100 largest MSA’s (Metropolitan Statistical Areas) in the United States. We ranked the cities using three categories:
- Affordability
- Inventory
- Population Growth
In all, there were 7 factors across those three larger categories that are listed below along with their corresponding weights. Each city was graded on an 85-point scale, with a score of 85 representing the hottest housing market.
Finally, we determined each city’s weighted average across all categories to calculate its heat score and used the results to rank-order our sample.
Affordability—45 points
- Home price change percentage 2021 vs 2022—Double Weight
- Homes price change percentage 2012 vs 2022—Full Weight
- Average price per square foot (measured in hundreds)—Full Weight
- Majority of homes available below and above the national average of $428,700 (calculated with average home price and factored into a yes or no ratio)— Half Weight
Inventory—35 points
- Average active home listing per month—1.5 Weight
- Average days on the market before pending sale—Double Weight
Population Growth—5 points
- Population growth change percentage from 2010 census vs 2020 census data —Half Weight
Sources
- U. S. Census Bureau
- Redfin
- Zillow
- World Population Review
- Kiplingler
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Russians owe the tradition of celebrating the New Year on the night of December 31 to January 1 to Peter I: it was he who in 1699 signed the corresponding decree on the introduction of a new chronology system. Before the emperor's innovation, the holiday fell on the modern Day of Knowledge - September 1.
In the 18th century, Moscow for the first time began to unobtrusively preen for the New Year: modest decorations in the form of fir-tree, pine and juniper branches appeared on the central streets. The townspeople adopted this custom from the Europeans who lived in the German Quarter. The holidays lasted about a week, at which time Muscovites visited fairs, held festivities and burned fires in empty barrels on the streets. nine0003
© RIA Novosti / Yuri Abramochkin
Garlands of the big city: how the New Year decoration of Moscow has changed
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Decree on the introduction of a new system of chronology. Before the emperor's innovation, the holiday fell on the modern Day of Knowledge - September 1.
In the 18th century, Moscow for the first time began to unobtrusively preen for the New Year: modest decorations in the form of fir-tree, pine and juniper branches appeared on the central streets. The townspeople adopted this custom from the Europeans who lived in the German Quarter. The holidays lasted about a week, at which time Muscovites visited fairs, held festivities and burned fires in empty barrels on the streets. nine0003
© RIA Novosti / Yuri Abramochkin
2 out of 10
Live fir trees did not immediately become the main symbol of the New Year. The first public Christmas tree in Moscow appeared only in the middle of the 19th century, it was installed in a building on Okhotny Ryad, which today is called the House of the Unions. In the same period, New Year's concerts for children, decoration of the country's main Christmas tree on Cathedral Square and holding fairs and concerts in the Manege became a tradition.
New Year's toys were considered an expensive pleasure, and the city did not have the opportunity to purchase them for a comprehensive and uniform design of the streets. Moscow was modestly decorated with cardboard and wooden figurines, fruits, and simple sweets. Light illumination in its modern sense became part of the New Year's look only at the end of the 19th century. nine0003
© RIA Novosti / Galina Kiseleva
3 out of 10
After the 1917 revolution, the Christmas tree disappeared from Moscow streets for almost 20 years. She regained the status of the main symbol of the New Year only in 1935. By this time, Soviet craftsmen resumed the production of Christmas balls and toys, and beautiful glass decorations began to be sold in Moscow.
By the middle of the 20th century, elements of urban design were also replenished with streamers with bright flags, posters with congratulations, costumed heroes of fairy tales and, of course, numerous Santa Clauses and Snow Maidens began to appear at winter fairs. nine0003
© RIA Novosti / V. Shiyanovsky
4 of 10
Until the end of the 20th century, there was no single concept of Moscow's New Year's decorations, they say in the KGH. Traditionally, the central streets and squares, front entrances to the city were decorated in the capital, rare garlands could be seen only at the main attractions and key buildings. Only in the early 1980s did specialists begin the first developments in the field of lighting design in Moscow, but this process was interrupted by the beginning of perestroika. nine0003
© RIA Novosti / Dmitry Donskoy
5 of 10
Only in the early 2000s, the capital slowly but surely began to move towards its full-fledged New Year's image. Not only the central, but also the outlying streets began to be decorated with thematic banners. Light ribbons and decor began to appear on the facades of buildings, social and cultural facilities, and life-size figures of fairy tale and cartoon characters became very popular. Despite some clumsiness, the abundance and variety of decoration created a festive atmosphere, attracted the attention of citizens and tourists, and generally had a positive effect on the appearance of the city. nine0003
© RIA Novosti / Valery Shustov
6 of 10
For several years, the city has been actively experimenting with the format of New Year's decoration: fabulous light gardens "grow" on Moscow streets, then decorated pines and Christmas trees appeared in huge numbers, the color changed gamma and key elements of decor. In parallel, engineering and lighting technologies were developing in the capital, which were gradually introduced, trying to strike a balance between beauty and functionality. As a result of the efforts made, Moscow created its own concept of festive decoration, which has been adhered to annually since then, the KGH notes. nine0003
© RIA Novosti / Vladimir Vyatkin
7 of 10
In modern Moscow, for the New Year, several thousand light structures are installed on the streets, squares, parks and squares of the city every winter. In particular, this season, according to the KGH, over 4,000 installations will appear in the capital.
"The main symbols of the holiday - Christmas trees with colorful balls and garlands - will create a special atmosphere. Manezhnaya, Tverskaya, Pushkinskaya squares, Novopushkinsky square, Gazetny and Kamergersky lanes, Kuznetsky Most street will feature light arches. The tent arch will traditionally decorate the Vitali fountain on Revolution Square," said Petr Biryukov, Deputy Mayor of Moscow for housing and communal services and landscaping. nine0003
© RIA Novosti / Maria Devakhina
8 out of 10
Festive decorations appear not only in the city center, but also in the most remote areas of Moscow. Moreover, as the KGH reminds, individual structures become truly iconic and iconic for each district of the capital - for example, a huge Christmas tree ball is traditionally mounted on Poklonnaya Hill, lanterns on Tverskaya Street turn into glasses of champagne, and luminous figures of polar bears depicting the Umka bear cub and his mother, were so loved by the residents of the Rostokino district that they turned into a real New Year's symbol for the locals. nine0003
© RIA Novosti / Maria Devakhina
9 of 10
All structures, such as light arches, luminous trees, garlands and numbers symbolizing the coming year, are used in the capital repeatedly. As explained in the KGH, the practically unlimited service life of the scenery was achieved thanks to modern technologies and light-emitting diodes, on which the New Year's image of Moscow is "built". LEDs provide bright, stable and long burning, do not require warm-up time, are not afraid of weather anomalies and low temperatures. Before each winter, all structures and decorative elements undergo mandatory diagnostics and, if necessary, are repaired; before installation, they are stored in warehouses under the supervision of specialists. nine0003
© RIA Novosti / Maria Devakhina
10 of 10
In addition, KGH draws attention to the fact that holiday decorations harmoniously fit into the image of modern Moscow thanks to thoughtful color design. Most of them are made in warm white and yellow tones, which correspond to the concept of street lighting and the architectural and artistic lighting of the capital. Thanks to an integrated approach, the New Year's image of the city turns out to be bright, memorable, but at the same time concise and uniform. nine0003
© RIA Novosti / Alexander Vilf
December 27, 2022, 13:07
Federal Notary Chamber: notaries advise
Yesterday, 15:36
Moscow When is the best time to buy an apartment? Analytics and forecasts. Articles about real estate, building and repair. SIBDOM
In January and summer, the demand for housing usually decreases. By purchasing an apartment at this time, buyers can save. But in recent years, fluctuations in market demand are more dependent on changes in mortgage rates or innovations in legislation than on the season. nine0003
The housing market is subject to seasonality. In January, demand traditionally decreases, buyers use the long New Year holidays to relax. Few people at this time are looking for real estate.
Business activity in the market usually recovers by spring. A new decrease in the number of transactions occurs during the May holidays. This drop in demand continues for the first two summer months. In the summer, the housing market is quiet. Buyers go on vacation, postponing the solution of the housing problem to a later date. Those sellers that could not find buyers for apartments before the beginning of summer are temporarily removing properties from sale, hoping to return to the market in the fall, when business activity recovers. nine0003
At the end of summer, the number of buyers on the market gradually increases. Starting from August, demand gradually increases and grows until December. Sales peak at the end of the year. Many are trying to complete all business and solve the housing problem before the New Year. “December is always the leader in terms of the number of sales. Perhaps this is due to the fact that at this time many companies give out bonuses, which are then invested in the purchase of real estate, - says Adelina Abasova, commercial director of Monolitholding Group. “In addition, during the last two months of the year, commercial properties have been actively sold.” nine0003
“If you try to average sales by dividing all sales for the year by 12, by the number of months, then the “lowest” months in terms of sales will be January, May and June, and the best months will be March, October, November and December,” says Evgeny Kovalsky, Development Director of SM.CITY. — The best month in terms of sales for us is August. In terms of apartment sales, it even surpasses December and November. Over the 14 years of our company's operation, this rule has been deviated from only once: in the crisis year of 2015, there was no increase in demand in August.” nine0003
The demand for mortgages depends on the season, as does the demand for housing. Back in the spring, Sberbank predicted a seasonal decline in demand in June-July. The main volume of mortgages in the bank in 2019 is expected to be issued in the third and fourth quarters.
When is there no seasonality in the real estate market?
But there are exceptions when there is no pronounced seasonality in the market. In recent years, the traditionally calm summer season has twice turned out to be atypically active. And in both cases, this was due to the return to the market of pent-up demand. nine0003
In 2012, the market began to recover from the crisis, buyers did not leave even in the summer season. The situation repeated itself in 2017 and was caused by lower mortgage rates. In December 2014, banks raised their home loan rates sharply and then cut them very slowly over the next two years.
The most affordable mortgage rate became only by the summer of 2017, when banks began offering loans at 10% per annum, while until recently 11.25% (the rate under the state-subsidized mortgage program) was considered a low rate. Buyers, who had previously put off buying for two years until better times, entered the market, and there was no drop in sales in the summer. nine0003
How has demand changed since July 1, 2019?
The traditional seasonality associated with the time of year has been changing recently. Demand fluctuations in the market now depend more on changes in mortgage rates or innovations in legislation than on changing seasons. In spring 2019, the demand was affected by the Universiade. At this time, many Krasnoyarsk residents left the city, and the number of transactions decreased. In the summer, the traditionally low season on the housing market coincided with the entry into force of amendments to the legislation on shared construction. nine0003
On July 1, 2019, buyers waited with apprehension. It was assumed that from that moment on, prices would rise due to an increase in construction costs for developers. Therefore, buyers put off making a decision for a while to see what happens next. The situation is aggravated by the fact that in order to attract funds from equity holders for housing construction, from July 1, developers need to obtain a conclusion from the construction supervision on the compliance of the object with the requirements for completion according to the old rules.
The document, which establishes the procedure for issuing a conclusion, appeared only in mid-July. From that moment, developers began to submit documents to the supervisory organization. Given that in Krasnoyarsk we are talking about hundreds of residential buildings, the process of obtaining an opinion will take several weeks. And all this time, developers do not have the right to attract money from equity holders. nine0003
Monolitholding Group of Companies is currently building 15 residential buildings, the vast majority of them (nine objects) are at a high stage of construction, so they will be completed according to the old scheme, without escrow accounts. At the same time, contributions to the State Fund for the Protection of Shareholders are transferred for all these objects, ”says Adelina Abasova, Commercial Director of Monolitholding Group of Companies.
What is happening with apartment prices?
As far as prices are concerned, the onset of the high season alone is not enough to change the price of apartments. For this, other factors also need to work: buyers entered the market and their number grew so much that demand exceeded supply. Only then will prices rise. nine0003
In the primary market, price changes are not directly related to seasonality. Some developers change the price depending on demand, while others change the price as planned as the degree of readiness of the object increases.
“In our company, the price rises depending on the stage of construction, the adjustment takes place about once every two months, as the readiness of the facility grows,” says Adelina Abasova.
But at the same time, buyers really have the opportunity to save money when buying an apartment in the low season. At this time, in order to maintain sales at a certain level, construction companies offer discounts and announce promotions, stimulating buyers to enter the market. nine0003
“For ourselves, we have determined three dates on which we hold promotions every year,” explains Adelina Abasova. - This is the beginning of the year: with the help of promotions, we stimulate demand in January, when buyers usually go on vacation. In addition, promotions are held in late April - early May. The third date is discounts for the Builder's Day, we have such a campaign planned this year as well.”
What is the best season to buy an apartment?
As for the best season to buy an apartment, experts emphasize that there is no such season. This moment is different for everyone and comes with the appearance of personal needs. nine0003
“Now many people are waiting for lower mortgage rates. But the market has already created favorable conditions for transactions. The market is now overheated with offers, so there is an opportunity to choose the best option, bargain with the owner and buy an apartment at a good price. With lower rates, interesting options will quickly leave the market, the choice will be limited, and prices will no longer be so attractive in terms of bargaining,” says Valeria Shapran, president of the Krasnoyarsk Union of Realtors. — For buyers, it is much more profitable to buy an apartment cheaper at the current mortgage rate than to wait until the mortgage becomes cheaper. If in the future the rate drops significantly, they will have the opportunity to refinance the loan at a lower interest rate. Then they will be able to get two benefits at once: a good object and a favorable mortgage interest rate.” nine0003
If you want to change your old home for a new, more spacious apartment, you can do it at any time. In this case, we are not talking about the sale price or the purchase price of the apartment, but about the amount of the surcharge. And it practically does not change depending on the season on the market.
The beginning of the high season in 2019 will be superimposed by other factors affecting the volume of demand in the market.