The Hottest Housing Markets for 2022
The COVID-19 pandemic has given a lot of people time to reflect on their living situations. Naturally, this has made people decide to move somewhere else. Homebuyers and investors are now dealing with a housing market that’s quickly changing around the United States. These are some of the areas expected to be the hottest places to move to in 2022.
Tampa
Located on the coast of Florida, this city has become a home for young and old people alike. This is partially due to the strong economy, giving residents many job opportunities.
Affordable housing has also made Tampa skyrocket in popularity, giving people from expensive parts of the country a chance to move and purchase a home. Residents also enjoy Tampa for the warm weather all year long, a nice change from the rest of the country.
Jacksonville
Like other cities in Florida, Jacksonville has been boosted in popularity for new homebuyers. The warm weather and affordability are desirable reasons why someone would want to live there for a long time.
Raleigh
For the past decade, North Carolina has been making the news as a state with a lot of growth. Raleigh has been the center of all of that, bringing in large companies like Apple to the state.
This has caused a lot of younger people to make Raleigh their home, giving them a chance to start a new career and family. The average home price in Raleigh has even increased 20% since May 2021.
San Antonio
As people start to get priced out of cities like Austin, people are looking for the more “hidden gem” cities in Texas. San Antonio has been included due to affordable housing and a growing economy, giving more people the chance to start a new career.
Charlotte
Known as the most populated city in North Carolina, Charlotte has grown massively from the growing economy. The city is known as the second-largest banking center in the country, bringing banks like Bank of America, Truist Financial, and Wells Fargo to build their headquarters there.
As the next few months pass, the housing market is guaranteed to change even more. Keep an eye on housing prices and new job opportunities popping up and make a decision quickly if you don’t want to be priced out.
Is the Current Housing Market a Bubble?
The current housing market is not in a bubble. Though there are some things to worry about in the coming year. It is regarded so due to booming house prices. This rise in prices is noticeable in all areas, even in low-standard neighborhoods. Though the prices were high, the onset of the pandemic brought the prices higher.
No housing bubble
A housing bubble has not yet occurred. If the recent trends continue to occur, there will be other situations. There is a valid reason why house charges have been raised. The decline of mortgage rates has led to houses being boosted. Most homebuyers buy mortgages which they can afford. When these rates are lower, demand for them is higher.
This shortage was a result of the housing bubble in new home-based buildings. Though builders have increased their construction, the demands have not been met. The number of vacancies for homes has also lowered. Furthermore, people working from anywhere have contributed to this demand. Many persons who worked in the urban areas relocated to smaller cities and suburbs as they are not congested. These people relocating are willing to purchase the smaller towns’ houses at a higher price than the previously charged one. This relocation has made prices high.
Actions to be taken by policymakers
The increase has made owning a home unaffordable as the prices are rapidly increasing than incomes. It would be better to drop the charges to let income and construction charges catch up. Based on these measures, homes are overvalued. Investors do most house flipping. In the past, they used to buy old homes and renovate them before selling them completely, unlike nowadays where they buy and renovate them then renting to families who cannot manage to buy.
Housing market and new tax law
The new tax law could change the housing market. In the recent past, mortgages were at a lower price than now. Houses purchased at a low cost can now be sold at a great price. Reduced prices of places will be noticeable in some high-ranked areas.