Las Vegas, Nevada
While it's predicted that home prices in Las Vegas will continue rising at a rate of 7.9% in 2019, one of the fastest in the country, demand may not be able to keep pace.
At the end of November 2018, approximately 7,000 single-family homes were listed without offers at the end of November 2018 — a 54% increase over the previous year.
It's likely that rising interest rates are disincentivizing buyers, which is yielding an increase in available properties without a corresponding spike in demand. In other words, if prevailing trends continue, 2019 will likely prove to be a challenging year for sellers in the Las Vegas market.
Over the past year or so, home prices in Atlanta rose by approximately 13%, nearly doubling the national average. While it's possible the rate of growth may slow slightly, experts still believe the region will continue to outperform most other U.S. cities in 2019.
Despite the ultimate failure of its bid to become the home for Amazon's second headquarters, the mere fact that Atlanta made the short list will still likely help it attract new companies and stimulate job creation in the coming years.
In October 2018, housing inventory was down 19.7% from the previous year. If this trend continues, Atlanta's supply won't be able to meet the demand, resulting in an increasingly competitive landscape for buyers, even as the U.S. market cools off overall.
Thanks to a booming economy and strong job market, real estate experts predict the Indiana housing market will continue to flourish in 2019.
Despite an ongoing surge in home prices, Indiana remains one of the most affordable regions to live in the Midwest, making it an attractive option for many home buyers, despite rising interest rates.
According to recent data from Realtor.com, Indianapolis' active inventory continues to shrink, which will keep supply relatively low to demand and give sellers the upper hand. With its Midwestern charm and reasonable prices, don't expect this market to cool down anytime soon — even in the face of rising home prices and mortgage rates.
Charlotte, North Carolina
The Charlotte housing market has become a prime target for real estate investors, primarily due to the relatively low-median home value ($203,900) and steadily rising rents.
The median age in Charlotte is 34, which is several years younger than the national average.
What makes Charlotte so attractive? The city offers both a high quality of life — Charlotte was recently ranked 22 on U.S. News' “Best Places to Live” list — and a booming economy — unemployment rates dipped below 4% in August of 2018.
Unsurprisingly, the market is on the up and up — home values increased by approximately 10.2% over the past year and are expected to keep rising in 2019, though at a slower rate of 4.5%. That said, inventory will remain tight, so expect a competitive market for buyers.
San Jose, California
While other tech-centric real estate markets, such as Seattle, have been pumping the breaks as of late, Zillow recently named San Jose the hottest housing market in the U.S. for both 2018 and 2019.
Tech salaries in Silicon Valley have skyrocketed in recent years and, unsurprisingly, regional home values have followed suit.
Last year, home prices in the San Jose area increased by approximately 11.23%. Don't expect that growth to slow down anytime soon — in fact, Zillow predicts it will accelerate to a whopping
19.22% in 2019.
Of course, with population-growth slowing and for-sale inventory on the rise, that forecast could end up changing. But with a median household income of $117,474 and 0.039 job openings per person (the highest of any large U.S. metro area), for now, San Jose's future is looking rather rosy.
Dallas-Fort Worth, Texas
While Dallas-Fort Worth home values increased by 11.17% in 2018, sales slowed during the second half of the year, with experts citing increased mortgage rates and home prices as the primary causes.
In fact, Zillow recently rated the overall Dallas housing market as “cold,” citing the fact that housing prices are currently outpacing income growth.
Experts still estimate a solid 8.67% growth rate for the Dallas-Fort Worth housing market in 2019; however, as interest rates continue to rise and impede people's ability to buy, it's possible we may see a more significant slowdown in sales and prices.
Salt Lake City, Utah
Salt Lake City's strong economic growth and thriving downtown have been driving a steady increase in the demand for housing — unsurprisingly, prices have followed suit. Home values in the city grew by 15.1% over the course of 2018 and Zillow predicts it will grow by an additional 4.4% over the next 12 months.
This high rate of growth and competition among buyers can largely be attributed to the fact that supply has not yet caught up with demand. What's more, the mountainous topography of the region limits where homes can actually be built.
As such, it's safe to assume Salt Lake City's housing market will continue to grow — and strongly favor sellers — in 2019.
Memphis stands apart from the other cities on this list as a housing market where price increases were largely driven by a shortage of inventory and new construction. From December 2017 to December 2018, the number of new listings decreased by 5%, which, over the same period, drove up home values by approximately 10.22%.
Zillow predicts that the market will slow in 2019, with below-average home value increases, YoY. Similarly, Realtor.com estimates that the Memphis market will see a 3.4% increase in home prices, but a 4.6% decrease in sales.
Tampa's real estate market has grown by nearly 10% since the end of 2017. In large part, this can be attributed to the city's thriving economy. Over the past year, Tampa added 34,600 new private sector jobs and, in August of 2018, unemployment fell by a 3.6%.
With its strong job market and attractive median home value of $211,500, all signs point to another solid year of growth for Tampa's housing market. Indeed, Zillow predicts Tampa home values will go up by an additional 6.5% in 2019.
The Orlando housing market ended 2018 with a 6% increase in home prices over the previous year, but a 3% decrease in annual home sales. Ultimately, higher median prices, coupled with a relatively low inventory amid increasing demand, boxed out would-be buyers who were unable to break into the competitive marketplace.
That said, December 2018 saw a rise in inventory for the first time since July of 2015, which may prove to be a turning point for the region. Growing supply will decrease competition among buyers, which may cool the market slightly, but could also help give the overall volume of home sales a boost.
In the end, a strong economy fueled by tourism will propel Orlando's housing market forward. Zillow still expects home values to increase by 5.71% so, despite marginal increases in inventory, Orlando will likely remain a strong seller's market in 2019.