Texas is hot. Not just in terms of what the thermometer says, but also in terms of real estate. Three of the top five real estate markets in the U.S. right now are all in the Lone Star State. But if wide open plains or the Gulf Coast don’t appeal to you, don’t worry, there are other cities for you to consider. Let’s dive in to learn more about the five best bets for real estate.
1. Denver. Now that the economy is perking up, home prices and housing demand are both on the rise in the beautiful Mile High City. Unlike pre-recession levels, however, oil companies do not dominate the employment market as much as they did, so the Denver economy is not as volatile as it once was. Plus, the housing areas around the country that fell the hardest when the recession hit were the first to start to recover. Once those areas balanced back out, it was time for other markets to grow. Denver has seen home sales increase 4.6% over last year, and home prices increase 9.2% in the same time frame, making it one of the single hottest real estate markets around.
2. San Antonio. The first Texas entry is for an area with a robust economy and reasonable home prices. Home prices here have still risen 4.3% over 2014 levels, and sales overall are up 5.5%. San Antonio has also outpaced the nation in terms of job growth, posting a mere 4% unemployment rate earlier this year thanks to adding additional types of businesses besides oil so instability in the economy has been reduced.
3. San Jose. It has been well noted recently that the entire Bay Area has been extremely popular in terms of housing. Bidding wars have broken out over homes, and houses are selling within days of hitting the market, even fixer-uppers. San Jose, just to the south of San Francisco, has a median home price of over $680,000. High tech is king once again, and that brings people to the area. Workers are looking for places to live, leading experts to predict that home sales will increase 7% this year over 2014.
4. Dallas. Next on the Texas three-step is the home of the Cowboys. In the last few years the price of oil has fluctuated, but Dallas has made it a point to stay strong despite the deck it was dealt. They have added jobs at a rate that outpaces the national recovery, and home sales are back to pre-recession levels. Prices in Dallas are up 7.3% over last year, and the predictions are that these economic indicators will remain true for a while to come.
5. Houston. Houston rounds out the Texas trifecta despite being the one city on the list that hasn’t diversified employment much outside the oil industry. Buoyed by the fact that Texas is attracting more people than any other state, sales of houses are expected to be 5% higher this year than in 2014.
There are several honorable mentions, like Des Moines and Minneapolis, the latter of which is a big draw for younger homebuyers, but these five cities are going to be trendsetters this year and will help the overall housing market look brighter for some time to come.