At the start of a new year, most of us will often take a little time to pause, reflect, and consider our current situation. This is of course, about casting an eye to the future, to foresee what is likely to come our way as the year unfolds. Well, those of us in the real estate industry are no different. The start of the year is the perfect time to compile statistics and carry out analyses to accurately see how 2018 will develop in the property market.
Industry giants, Zillow, recently conducted a study which determined the hottest housing markets for 2018. This involved exploring the six key variables which define a market’s strength by looking at a region’s employment and salary status, and the appreciation rate of their home valuations. In a comparison of the 50 largest metros in the United States, Austin proudly holds the number 6 spot.
What Makes a Market “Hot”?
In order to determine the hottest real estate markets in the US for 2018, Zillow analyzed six key variables. These included a forecast for the appreciation of the home value for the next 12 months, the growth in citizen’s income, the population growth, unemployment rates, and the number of potential job openings per person.
Keeping it simple, it’s all about work. Strong employment sectors have strong real estate markets. It’s no surprise that out of the top ten list, five of the hottest markets are considered national tech hubs (San Jose, San Francisco, and Seattle included). The tech industry has been one of the major contributors to the US economy for years, and no one will need an introduction to Silicon Valley and the sky-rocket effect it has had on real estate valuations.
A Deeper Look at Hot Austin
Out of the 50 largest metros examined, Austin was rated as having the 6th-hottest real estate market in the United States for 2018. The key factors which make Austin strong are:
- Zillow forecast that home valuations will appreciate 3.3%
- Glassdoor forecast 47,430 new job openings
- A very low unemployment rate
- A very fast population growth rate
- A typical household income of $71,000
Hottest Neighborhoods in Austin
Zillow’s study also highlighted which of the neighborhoods within Austin are going to be hot for 2018. Do you own a house or are you looking to buy in these districts? If so, 2018 could get interesting…
Pecan Springs Springdale – This quiet, well-established residential neighborhood on the northeast side of Austin is expected the see home values increase by a huge 7.4%.
MLK – The Martin Luther King neighborhood in East Austin is a great location for quick access to the city and still has investment opportunities. Home values are predicted to increase by 6.1%.
Montopolis – Located southeast of the city, this neighborhood used to have a reputation as one of the poorest areas in Austin until gentrification swept through. It still has plenty of real estate with investment scope, giving home values a predicted 5.7% increase.
West Congress – This small neighborhood, south of Austin, traditionally hosts ranch-style homes and apartment complexes. Popular with families and students, West Congress home valuations are set to go up by 5.2%.
Coronado Hills – This pleasant, family-friendly neighborhood in the northeast of Austin is known for its large lots and good-sized homes. Valuations in Coronado Hills are expected to rise by 4.7%.
We are Harlan Realty – we know Austin. Whether you’re looking to buy or sell, we are perfectly positioned to advise you on how to make the most of your Austin real estate. Contact Us, we are happy to give you free advice that could help you see the bigger picture.