Home seller‘s in the USA have had a good year. Low employment, a booming stock market, and high consumer confidence have created an environment where investors can feel good about both buying and selling real estate in the USA. While most markets have performed well for real estate investors, these seven markets have been stronger. Here is a look at seven seller’s markets where real estate investors are cashing in.
1. San Jose, California
Homes in expensive markets have seen the most price gains this year, with San Jose being at the top of the pack. Sellers in San Jose saw an average price gain of $356,500, a staggering number that has caught the interest of real estate investors not just in the USA, but from around the globe.
2. Fort Wayne, Indiana
Fort Wayne doesn’t have a lot of homes on the market, which can make things tough for buyers. Of course, this also makes things great for sellers, as low inventory makes for extreme competition. Multiple offers on homes are common in Fort Wayne, which can lead to bidding wars, the best possible scenario for any seller.
3. San Francisco, California
Sales may have slipped earlier in the year in San Francisco but prices have continued to soar. Average price gains this year in the Golden City were $276,750 – not quite what was realized in San Jose, but still extremely attractive to real estate investors.
4. Detroit, Michigan
Home prices are climbing in Detroit, but they are still valued well below comparably sized cities in the USA. This has led to an influx of buyers. In addition, it’s worth noting the median income in Detroit is right in line with the national average, while home prices are still well below the national average. This leads to more purchasing power, which has led to a lot of competition. On top of all of this, the Baby Boomer generation in Detroit is happy staying put in the city, tightening availability. Sellers, rejoice.
5. Columbus, Ohio
If you didn’t know Columbus was a hot housing market, just ask Suzy and Mike Johnson. They recently listed their Columbus area condo only to wake up the next morning and find they had five offers – all above asking price.
Job growth, population growth, and other factors have led to such a high demand for homes in Columbus. It’s also home to one of the biggest schools in the USA (Ohio State), and major employers providing high paying jobs including Honda, JP Morgan Chase and Nationwide.
6. Dallas, Texas
There’s no doubt Dallas is still a seller’s market, which it has been for several years. Sellers are still receiving nearly 100% of their original asking price on average.
While the bidding wars may have slowed and the market in Dallas may have peaked, there is no question that is still a great place to list your property. There are plenty of listings in the city, there are also roughly 40,000 people per year moving to North Texas for employment. Supply and demand meet quite nicely in Dallas.
7. Denver, Colorado
According to a recent report from Attom Data Solutions, Denver is one of the most profitable cities a real estate investor can buy into. They found that homes bought in Denver on average saw a 50% return on the previous purchase price. It’s these kinds of massive returns that have real estate investors cashing in on Denver homes, which is truly a seller’s market right now.