According to Realtor.com’s annual report on the residential real estate markets they believe will be the hottest in the coming year, Sacramento distinguished itself, once again. In fact, Realtor.com Chief Economist Jonathan Smoke projects Sacramento to be the fourth hottest residential real estate market in the entire country in 2017, with anticipated appreciation rates of 7.2%. Additionally, the report by Realtor.com’s economic analysts predicts that sale volume will also be up 4.9% in 2017.
That follows up on a stellar year for real estate in Sacramento in 2016. Interestingly, a year ago, Sacramento was also ranked #4 in the nation for projected real estate price and sales growth in 2016, making Sacramento the only metropolitan statistical area to rank in the top five both years!
This year’s report also estimates the median home price to be $420,000, so an added 7.18% would bring the median to $450,156,000.
While Sacramento home prices have appreciated rapidly in past years, the region is still primed for growth. Sacramento is the most affordable major city in California, with home prices well less than half of those in San Francisco, San Jose and the Bay Area.
More and more businesses are coming to Sacramento, bringing good-paying jobs, and the new Golden 1 Arena and revitalization in midtown, downtown, the Railyards, East Sacramento, and West Sacramento are well underway. With an extremely tight supply of existing homes and too few new homes under construction, the housing shortage in Sacramento means the price of rent is skyrocketing, further invigorating the residential real estate market.
That’s a notable contrast from Smoke’s predictions for the entire U.S. real estate market, which he expects to slow down slightly, but not falter. According to Smoke and Realtor.com, the U.S. could see an average of 3.9% in home price appreciation and only 1.9% in sales volume growth in 2017.
The report also highlights the fact that many of the fastest-growing real estate markets are in metropolitan areas in the Western United States. In fact, Western cities account for 11 of the top 25 cities on the list for 2017, including 5 cities in California.
On average, the top 10 metropolitan markets on the list will see price gains of 5.8% with an increase in sales volume 6.3%
Here is the data on the top-20 real estate markets expected to grow the fastest according to Realtor.com:
1. Phoenix, AZ
Median Price: $300,000
Projected Price Growth in 2017: 5.94%
Projected Sales Growth in 2017: 7.24%
2. Los Angeles, CA
Median Price: $675,000
Projected Price Growth in 2017: 6.90%
Projected Sales Growth in 2017: 6.03%
3. Boston, MA
Median Price: $480,000
Projected Price Growth in 2017: 6.09%
Projected Sales Growth in 2017: 6.32%
4. Sacramento, CA
Median Price: $420,000
Projected Price Growth in 2017: 7.18%
Projected Sales Growth in 2017: 4.92%
5. Riverside, CA
Median Price: $350,000
Projected Price Growth in 2017: 4.98%
Projected Sales Growth in 2017: 6.88%
6. Jacksonville, FL
Median Price: $284,000
Projected Price Growth in 2017: 4.79%
Projected Sales Growth in 2017: 7.03%
7. Orlando, FL
Median Price: $272,000
Projected Price Growth in 2017: 5.69%
Projected Sales Growth in 2017: 6.10%
8. Raleigh, NC
Median Price: $312,000
Projected Price Growth in 2017: 4.16%
Projected Sales Growth in 2017: 7.55%
9. Tucson, AZ
Median Price: $237,000
Projected Price Growth in 2017: 6.10%
Projected Sales Growth in 2017: 5.47%
10. Portland, OR
Median Price: $420,000
Projected Price Growth in 2017: 6.55%
Projected Sales Growth in 2017: 5.02%
11. Durham, NC
Median Price: $320,000
Projected Price Growth in 2017: 2.55%
Projected Sales Growth in 2017: 8.95%
12. Colorado Springs, CO
Median Price: $335,000
Projected Price Growth in 2017: 4.77%
Projected Sales Growth in 2017: 6.71%
13. Jackson, MS
Median Price: $207,000
Projected Price Growth in 2017: 1.98%
Projected Sales Growth in 2017: 9.44%
14. Detroit, MI
Median Price: $195,000
Projected Price Growth in 2017: 5.17%
Projected Sales Growth in 2017: 6.22%
15. San Diego, CA
Median Price: $620,000
Projected Price Growth in 2017: 6.47%
Projected Sales Growth in 2017: 4.89%
16. Salt Lake City, UT
Median Price: $345,000
Projected Price Growth in 2017: 6.66%
Projected Sales Growth in 2017: 4.67%
17. Deltona, FL
Median Price: $260,000
Projected Price Growth in 2017: 3.10%
Projected Sales Growth in 2017: 8.23%
18. Provo, UT
Median Price: $334,000
Projected Price Growth in 2017: 5.16%
Projected Sales Growth in 2017: 5.84%
19. Austin, TX
Median Price: $385,000
Projected Price Growth in 2017: 3.50%
Projected Sales Growth in 2017: 7.40%
20. Seattle, WA
Median Price: $430,000
Projected Price Growth in 2017: 7.36%
Projected Sales Growth in 2017: 3.41%
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