(NEXSTAR) – Home prices in the United States continue to climb as the housing market continues to thrive amid the COVID-19 pandemic.
A new report from Realtor.com shows that many of the major housing markets to 2022 will be technology hubs in the Mountain West and Midwest. Experts say these regions have strong economies, low unemployment rates and considerable job growth.
The average listing price for the hottest housing markets forecast for 2022 reported an average listing price of $ 431,000 in November, well above the national median price of $ 379,000. These cities offer more options for those moving in than other large metropolitan areas like New York and San Francisco, the report explains.
“Our main housing markets are attracting distant workers, perhaps interested in earning a salary in a big city while enjoying the quality of life that these generally smaller areas offer,” says Danielle Hale, chief economist at Realtor.com .
In the report, Realtor.com analyzed the expected growth in home sales and prices in 2022 and compared them to the previous year in the 100 largest metropolitan areas nationwide. Factors included past sales prices and number of sales; the amount of new construction; and past and expected growth in the economy, households and income.
The main housing markets for 2022 are:
- Salt Lake City, Utah
- Boise, Idaho
- Spokane-Spokane Valley, Washington
- Indianapolis-Carmel-Anderson, Indiana
- Columbus, Ohio
- Providence-Warwick, Rhode Island-Massachusetts
- Greenville-Anderson-Mauldin, South Carolina
- Seattle-Tacoma-Bellevue, Washington
- Worcester, Massachusetts-Connecticut
- Tampa-St. Petersburg-Clearwater, Florida
These aren’t just the hottest housing markets for the New Year, they’re also some of the most expensive. All 10 are in the top 50 metro areas where homes are selling above historical prices.
In a report from Florida Atlantic University, researchers used open source data from Zillow or other vendors to calculate the 100 most or least expensive metropolitan cities in the United States. The first report was released in July 2021 with a new report released each month, the latest being from November.
The FAU assigns a score to each metropolitan area. A positive score indicates a premium, which means that an average property in a metro is selling for above its historical implicit price. A negative score represents a discount, meaning the average property is selling below its historical implied price.
Three of the housing markets expected to be hottest next year are among the top 10 most expensive markets – Boise with a premium of 78.36%, Spokane at 48.94% and Salt Lake City at 47.32%. Tampa is in the top 15 with 39.94%. Indianapolis, Columbus and Seattle all have premiums above 30%, with Greenville just behind at 27%. Providence and Worcester have the lowest of the 10 housing markets, at 14.61% and 17.44% respectively.
According to the FAU, only two metropolitan areas enjoy discounts on house prices: Baltimore and the city of Honolulu.
Home prices across the country rose again in October as the housing market continues to grow following last year’s coronavirus recession.
During Christmas week, mortgage rates fell to 3.05% for the 30-year benchmark, fixed rate and to 2.66% for the 15-year fixed rate home loan. Still low rates indicate that credit markets seem more concerned with the omicron variant that depresses economic growth than with the highest inflation rates in nearly 40 years.
The Associated Press contributed to this report.
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