The economists at Realtor.com released a list of the top 10 real estate markets that will grow the most in 2017. Our very own Los Angeles is ranked 2nd only behind Phoenix; Boston and Sacramento came in 3rd and 4th place. There are two important metrics considered when ranking cities poised for the most growth and those are: price growth and transaction volume. Home prices in Los Angeles will continue their upward trend with a projected growth rate of 6.9% and the number of sales to increase by 6%. Homes are selling for more than last year and there will be overall more sales than there was in 2016. Below is the actual list:
- Los Angeles
- Riverside, California
- Portland, Oregon
Economists at Realtor.com point to LA County’s low unemployment rate, a large population of millennials, a wealthy baby boomer population, and consistent home price growth since 2008 fueling all of this projected growth in 2017. These factors are all contributing to LA’s sunny 2017 real estate forecast and everyone in the industry is cheering. I’m delighted with this news. As I mentioned in previous blog posts, I was concerned how the election outcome would impact the real estate market. That negative reality never materialized; at least not yet. Consumer confidence remains strong and people are confident in buying and selling real estate in the area.
You can see from the list that many of the growth is in the southwest region of the US; the same region that was hit the hardest during the housing crisis of 2008. It’s fantastic to see the recovery pulling these real estate markets into high growth territory. Interest rates are on the move so get your home shopping in sooner rather than later. Happy Holidays, folks!