10 U.S. Cities With Hot Buyer’s Markets
Location, location, location…it’s not just a cliché. If you’re thinking about breaking into real estate, you’ve got to learn to be selective. Buying a house in the right area—ideally, in a buyer’s market—can help you save a pretty penny on the purchase price and possibly earn some dough on a flip down the road. What’s a good buyer’s market, you ask? A buyer’s market refers to a situation where there’s more inventory (in this case, houses) than there are buyers, driving costs down. A hot buyer’s market refers to this situation in a desirable locale, where inventory is varied, discounts are common and interest rates are low.
We’re looking at data aggregated from the Zillow Research Center to take a closer look at some of these exemplary buyer’s markets.
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Cleveland, OH—Cleveland rocks! The Lake Erie city ranks far below the national average in terms of home value, hovering around $147,000, compared to the national average of $226,000. In Cleveland, house-buyers wind up with a purchase at around $8,000 lower than list price. The combo of low prices and big discounts makes Cleveland a hot, hot spot to buy real estate in America.
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Chicago, IL—Hello, Chicago! This Midwest city isn’t just an affordable place to live, it’s also a desirable one, making it a great place for investors. While Chicago’s average home value is right on par with the national average at $226,200, it brings the benefit of big inventory. The city had about a six-month supply of homes for sale in February 2019, meaning it would take six months for Chicago to run out of its supply of listed homes.
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Asheville, NC—With over two dozen craft breweries, a thriving arts scene and plenty of nature to explore, the jewel of the Appalachian Mountains is a great place for buyers to consider. While home prices are on the rise, they’re selling at a discount, with an average sale price of 10.8 percent below list price.
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Philadelphia, PA—Who knew the City of Brotherly Love was so affordable? With a median home price of $234,200, the Philadelphia city really beats out many of its New England neighbors in terms of affordability. Compare that to Boston’s median home value of $468,100 and New York City’s median home value of $442,000. It’s also a great place for the bargain-hunter, since homes in Philly sell for around $9,000 less than list price.
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Detroit, MI—Everyone knows Detroit has had it rough, but it’s definitely on the upswing for young and hungry real estate moguls. It ranks a bit lower than Cleveland on the affordability scale, with the median home value hovering around $162,000. But a good chunk of the houses in Detroit sell for below list price. Detroit reflects an overarching theme in the Rust Belt—a super-low cost of living coupled with fast-rising revitalization—which makes it appealing to many.
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Pittsburgh, PA—Another Rust Belt city with a lot to offer, Pittsburgh’s housing market is on fire for buyers. The median home value there is surprisingly low at just $152,600. The Steel City is poised to see a big market growth this year, with Zillow predicting a 5.5 percent increase by March 2020.
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Spokane, WA—In Washington, there’s constant talk about the high cost of housing, especially in and around the tech hotbed of Seattle. So you may be surprised to see the state’s second biggest city on this list. In Spokane, the median home value is $211,800, with plenty of properties selling significantly below list price. If you’re considering Spokane, you’ll want to hop on the inventory in this market fast, since it has already risen by 11.7 percent in a year!
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Albuquerque, NM—New Mexico’s largest city has plenty of spirit and soul and, despite the over-saturation of housing, its economy is thriving, making it a great place for entrepreneurs and relocators. Albuquerque boasts a median home value of $202,000, with housing discounts hovering around 4 percent. If you’re looking to invest in an up-and-coming area without sinking in a ton of money, Albuquerque is well worth your consideration.
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Tampa, FL—Tampa’s housing market matches its climate (super-hot). With a steady-growing market skewing towards the buyer, this city has a relatively large inventory, which means many of its properties are sold below ask. In Tampa, the median home value is around $220,000, so while it may not bring the biggest bargain, it offers a thriving economy and a high quality of life. Coupled with affordability, these factors make Tampa a real estate destination of note.
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Virginia Beach, VA—Virginia Beach is slowly becoming the darling of the American real estate market, specifically for buyers. In fact, Owners.com deemed VA Beach the city with the best buyer’s market in the United States this year, and for good reason: Buyers there won’t pay the least for real estate (the average median sale is $234,300), but they will get the biggest discount. Homes in VA Beach sell for around $11,650 lower than list price, making this city a bargain-hunter’s dream!
Paying Close Attention to the Housing Market
Whether you’re looking for your forever home or the ideal flip where a fresh coat of paint and some new hardwood flooring can translate to thousands, it’s well worth your while to pay attention to the above cities in your housing hunt. The real estate market is ever-changing, but it remains one of the safest places to invest your hard-earned money, so be sure to pay attention to the ebbs and flows of the market throughout the country!
