Places you should buy a home before the market heats up this fall
As the cost of housing continues to rise, people who are in a position to purchase real estate may want to consider purchasing a home before the market heats up. However, finding the right place to buy a property depends largely on individual circumstances and preferences.
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For some potential buyers, finding a place near their work or a good school system is essential. For others, it’s all about finding the right price. For others, it is important to live in a safe neighborhood where they can raise their children or retire comfortably.
If you’re not sure where to look for your next home, you’re in luck.
GOBankingRates spoke with Dottie Herman, former Vice President and CEO of Douglas Elliman Real Estate; Jennifer Patchin, real estate broker for Opendoor; and Rhett Weissman, real estate investor and CEO of Section 8 Coaching, for their thoughts on where to buy real estate now.
Here are their top picks, plus some things to consider when buying a home before the fall.
Dallas, Las Vegas and Nashville, Tennessee
Dallas, Las Vegas, and Nashville, Tennessee, may be worth checking out if you’re in the market for real estate.
“When it comes to buying a home, there are a few U.S. cities that I like to focus on more than others. Nashville, Dallas and Las Vegas are three cities that will see tremendous appreciation over the next few years,” Weisman said.
“Tennessee, Texas, and Nevada have reduced corporate taxes, created more jobs, and improved the quality of life for new homebuyers over the past few years, and that will continue,” Wiseman added. “These markets have not seen nearly the decline in home sale prices and transaction volume that other major U.S. cities have seen since prices rose.”
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Other Texas cities
While Dallas definitely makes the list, it’s not the only Texas city to consider for your home. Jennifer Patchen suggested several other areas within the Lone Star State that might be worth checking out. Here are the top 10 U.S. zip codes in Texas, according to Opendoor’s results:
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Cypress tree
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Katie
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Forney
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Aubrey
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Saint Anthony
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Leander
As for the top 15 family-friendly cities, Watauga, Texas also made the list.
“We’re seeing areas in the West and Southeast gaining favor among homebuyers. These neighborhoods are on the rise thanks to their spacious living and small-town atmosphere, among other factors,” Patchen said.
“Many of these postal areas are close to major cities – but not in the center of the action,” Patchen added. “This tells us that homeowners are looking for neighborhoods and communities with sophisticated amenities, but away from densely populated areas where they can also achieve a more relaxed and peaceful lifestyle – what we like to call ‘downscale’.”
Many of these locations also offer a variety of family-friendly features that attract people. This includes neighborhoods, parks and other outdoor facilities.
Massachusetts
Massachusetts is another state to consider when shopping for real estate, specifically Somerville. According to Opendoor, Somerville is another top 15 city for families looking to raise their children.
“The features and amenities of family-friendly neighborhoods are a deciding factor for home shoppers,” Patchin said. “In fact, half of first-time homebuyers cited ‘family’ as the main reason they decided to purchase a home in the past year.”
Like other family-friendly cities, Somerville has “proximity to outdoor space and offers family-focused programs and amenities. “For families looking to prioritize parks and other outdoor amenities, these locations are great options,” Patchen said.
Major metro stations in California, New York and DC
Major urban areas and family-friendly suburban areas are also key places to visit in the coming months.
“I’ve always believed in big cities and big metro areas,” Herman said. “Companies now want employees back in the office, and have now created new hybrid attendance policies. Full-time remote work from home will no longer be offered. Key markets and suburbs in New York, Los Angeles, San Francisco, Washington, and beyond will be good investments to buy now. In the long term Tawil, this is where most of the country’s jobs and strong local economies are based.
New Jersey or Virginia
For potential buyers looking for a family-friendly city in the northeastern region of the country, New Jersey can be a great option. Opendoor found that Cliffside Park, in particular, has great family-friendly neighborhoods and amenities, making it a good location for young and growing families alike.
The same goes for Virginia for those looking to buy property a little further south. Arlington is another one of the best cities for families, according to Opendoor.
South Carolina or Colorado
Last but not least, Summerville, South Carolina, and Parker, Colorado, are both on the list. According to Opendoor data, these two cities are not only two of the most attractive cities to buy into right now, but they also rank well when it comes to neighborhoods and larger living spaces — among other things. They may also be less crowded than larger metro lines, while still being close enough to take advantage of the same amenities and opportunities.
Urban areas could continue to heat up
As people consider where to buy a home in the next few months, one thing to note is that major cities could see the biggest price increases.
“With mortgage rates still fairly high and the market very tight, I can see prices continuing to rise in major cities in the coming months,” Herman said. “I think the big jumps in prices in small and medium-sized cities will fade as larger cities continue to come back post-coronavirus. Prices in these large market areas could rise to the extent that the market will bear it. There are very few homes for sale in more importance in the country.
Will the housing market really heat up this fall?
While the housing market may heat up in some areas this fall, it may not be as much as you expect, especially since the Federal Reserve is expected to raise interest rates again.
According to Weissman, fall is generally not a time when the housing market is hot. “The Fed will likely raise interest rates again, making mortgages less expensive. To counter this on the sell side, sellers will need to lower prices in order to make homes more affordable for buyers. The holiday season also slows the market,” Weissman said. “Naturally, buyers historically don’t tend to buy much from October through December.”
“Historically, spring and early summer are busy seasons for real estate and activity tends to slow in the fall and winter. With fewer buyers in the market, there is often less competition, more time to evaluate their options, and more ability to Bargaining when it comes to negotiating a sale.” “Seasonal and macroeconomic factors should certainly be taken into account in the moving process, but in the end, there is never a silver bullet to knowing the ‘perfect’ time to buy or sell.”
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This article originally appeared on GOBankingRates.com: Places You Should Buy a Home Before the Market Heats Up This Fall
