The Hottest Real Estate Markets 2020 Edition

The Hottest Real Estate Markets 2020 Edition

The Hottest Real Estate Markets [2020 Edition]

Article originally posted on Fox41 on January 5, 2021

Despite the current COVID-19 recession and the initial drop in home sales, the national housing market expanded significantly in 2020. According to a report by the Joint Center for Housing Studies of Harvard University, record low home inventories in tandem with historically low mortgage interest rates will most likely ensure home prices continue to rise.

Data from Zillow shows that the national average monthly home value index for 2020 was 4.7 percent higher than in 2019. Yet some housing markets have significantly exceeded this growth. A comprehensive look at state-level data and data from the nation’s 95 largest real estate markets reveals that home prices in the Western U.S. are projected to increase more than in any other region over the next 12 months.

Younger adults, including millennials, drove much of the increase in home sales during 2020, with millennials making up the largest share of home buyers at 38 percent. Higher earners—often less affected by detrimental COVID-19 economic and financial repercussions—also accounted for higher home sales in 2020.

According to statistics from the National Association of Realtors, the median household income of first-time buyers in 2020 was $80,000; the median household income of repeat buyers was $106,700. By comparison, the median household income in 2019 was $68,703. These higher earners also typically work in industries that allow for remote work, which, in conjunction with historically low mortgage rates, incentivizes larger home purchases outside of urban centers.