By S.E. Slack
Where will the hottest home market in the nation be in 2014? Salt Lake City. According to real estate firm Zillow, the capital of Utah is not just the place to be for great real estate deals in the coming year but for expected growth as well. It topped the company’s list for 2014’s Hottest Housing Markets.
To determine which markets will be 'hot' in 2014, Zillow combined current data on unemployment rates, population growth and the Zillow Home Value Index. Markets determined to be 'hot' were characterized by lower than average unemployment, population growth of greater than 2 percent during the past two years and are forecasted to have home value growth of more than 2 percent during the next 12 months.
Each market is likely to experience heavy demand for homes plus continue to see home values increase. Markets such as Denver have already seen a market bounce and will instead see a slowing in home values.
Second on the list is Seattle, which has experienced an 11.5 percent home value increase year-over-year. The home value in that city is $429,900 with typical sales prices coming in quite close at $425,000.
Austin took the third spot on the list. With year-over-year home values shooting upward by more than 12 percent, homes in that city are valued at $229,800, but are listed at $299,900. That’s an increase of 16 percent over the last 12 months.
Coming in at number four on the list is San Jose, where home values shot up 20 percent year-over-year and the typical home is valued at $643,900. Buyers don’t seem to mind – the median sale price is up 20.7 percent.
Sliding into the number five spot is Miami, where home values skyrocketed 27.4 percent year-over-year to $244, 100. Even better for home sellers is the fact that the median sale price is $284,600 – more than $40,000 above the typical home value and an improvement of 14.2 percent over the last 12 months.