(Nexstar) — U.S. home prices continue to rise 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 in 2022 will be tech hubs in the Mountain West and Midwest. Experts say these areas have strong economies, low unemployment rates, and significant job growth.
The median listing price for the hottest housing markets projected for 2022 reported a median listing price of $431,000 in November, well above the national average price of $379,000. The report shows that these cities offer more options for those who move to them than other major metropolitan areas such as New York and San Francisco.
“Our best housing markets attract far-flung workers, who might be interested in getting a paycheck from a big city while still enjoying the quality of life that these smaller areas generally provide,” says Danielle Hill, chief economist at Realtor.com.
In the report, Realtor.com analyzed projected home sales and price growth in 2022 and compared it to the previous year in the country’s 100 largest metropolitan areas. Factors included past selling prices and number of sales; The amount of new construction, economic and household growth, and previous and projected income growth.
The most important housing markets for 2022 are:
- Salt Lake City, Utah
- Boise, Idaho
- Spokane Valley Spokane, Washington
- Indianapolis-Carmel-Anderson, Indiana
- Columbus, Ohio
- Providence-Warwick, Rhode Island-Massachusetts
- Greenville Anderson Maulden, 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 among the most overpriced. All 10 are among the top 50 metropolitan areas where homes are selling above historical prices.
In a report by Florida Atlantic University, researchers used open source data from Zillow or other service providers to calculate the 100 most or less priced metropolitan cities in the United States. The first report was released in July 2021 with a new report released every month, the most recent of which is being from november.
FAU gives each metropolitan area a score. A positive result indicates a premium, which means that the average metro property is selling above its historical implied price. A negative result represents a discount, which means that the average property is selling for less than its historical implied price.
Three of the housing markets expected to be the hottest in the coming year are among the 10 with the highest price rises – Boise with 78.36% premium, Spokane at 48.94% and Salt Lake City at 47.32%. Tampa comes out in the top fifteen with 39.94%. Indianapolis, Columbus and Seattle all have premiums over 30% with Greenville closing in the back at 27%. Providence and Worcester had the lowest of the ten housing markets, recording 14.61% and 17.44%, respectively.
According to the FAU, only two metropolitan areas see home price discounts: Baltimore and metropolitan Honolulu.
Home prices across the country rose again in October as the housing market continued to boom in the wake of last year’s coronavirus recession.
Over the Christmas week, mortgage rates fell to 3.05% for a standard 30-year, fixed-rate and 2.66% for a 15-year fixed-rate home loan. Consistently low rates indicate that credit markets seem more concerned about the omicron variable driving lower economic growth than about the highest inflation in nearly 40 years.
The Associated Press contributed to this report.