A home for sale in Seattle, one of the hottest markets for 2014.
As the housing recovery continues into 2014, some new real estate markets will start getting more attention.
Jed Kolko, Trulia’s chief economist, told Business Insider that two main factors were considered when compiling the list.
“Markets that have faster job growth tend to have stronger housing,” Kolko said. “We looked at job growth over the past year, and also over a longer period of time. Housing markets don’t only depend on what’s happening today in the economy, but where it’s going in the longer term.”
Construction activity in 2013 was the other main consideration in compiling Trulia’s list.
“We looked at whether builders are betting on local markets, since builders build in markets where they think will be demand,” Kolko said.
The cities that made the list may be surprising to some, and there’s a reason for that. The survey excluded regions where homes tend to be overvalued, such as the coastal areas of California. They also didn’t consider areas where rates of foreclosure were high, as they are in parts of Florida.
Bethesda-Rockville-Frederick, MD
Job growth: 2.2%
Construction permits (relative to average for area since 1990): 92%
A Trulia report from December 2012 ranked these Washington, D.C. suburban metro areas as the third strongest market in the country.
And according to an article in Maryland’s Gazette, single-family home inventory is down, while demand is way up. Downtown Bethesda, especially, is having a boom — 2,000 new apartments and condos are set to be developed there in coming years.
Pictured: 7224 Arrowood Road., Bethesda ($6,250,000)
Charlotte, NC-SC
Trulia.com
Job growth: 3.3%
Construction permits (relative to average for area since 1990): 86%
Real-estate nonprofit Urban Land Institute ranked Charlotte 16th on their list of markets to watch for 2014.
According to the Charlotte Observer, “The continued influx of newcomers to Charlotte, coupled with its stable education system and growing medical sector, makes it attractive to national as well as regional real estate investors…and demand has increased so steadily in recent years that experts now say there aren’t enough homes for sale.”
Pictured: 7430 Baltusrol Lane, Charlotte ($4,750,000)
Denver, CO
Job growth: 2.6%
Construction permits (relative to average for area since 1990): 94%
The Denver housing market is significantly healthier than it was at this time a year ago. 5,337 homes were under contract this September, compared to 4,457 in September 2012, and average selling prices are up 8% from a year ago.
“We are seeing homes sell for prices that exceed any time in our history,” “Denver is leading the way.”
Pictured: 380 Fillmore Street, Denver ($2,450,000)
Fort Worth, TX
Job growth: 3.5%
Construction permits (relative to average for area since 1990): 83%
The housing supply is so low in Fort Worth’s Tarrant County that some houses will receive multiple offers or sell before being posted on realtors’ listing sites.
Realtors are reporting sales that are close to pre-recession rates, helped along by an expanding job market and low mortgage rates.
Pictured: 4705 Santa Cova Court, Fort Worth ($2,995,000)
Nashville, TN
Job growth: 2.8%
Construction permits (relative to average for area since 1990): 103%
Nashville was 12th on the Urban Land Institute’s list of the hottest markets nationwide, and construction is booming. In 2013, permitting was up 3% over the normal rate for the area.
Thriving education and music scenes are big draws to Nashville.
Pictured: 1358 Page Road, Nashville ($17,999,999)
Oklahoma City, OK
Job growth: 2.3%
Construction permits (relative to average for area since 1990): 142%
Of all of the markets on this list, Oklahoma City had the highest rate of construction permitting relative to what’s normal for the area, making this a strong market for both sellers and buyers.
The number of construction permits issued in 2013 was a 42% increase in comparison to the average number issued annually from 1990-2012.
Pictured: 3775 E. Hefner Road, Oklahoma City ($3,199,000)
Raleigh, NC
Job growth: 2.1%
Construction permits (relative to average for area since 1990): 99%
Raleigh’s population is steadily growing (2% increase from 2013-2014) and the job market is expected to expand in the long term. Science and tech-based growth from the Triangle contribute to the sunny outlook for this market.
Pictured: 1022 Marlowe Road, Raleigh ($3,490,000)
Salt Lake City, UT
Job growth: 2.4%
Construction permits (relative to average for area since 1990): 80%
According to the Urban Land Institute, Salt Lake’s investment prospects ranked 16th in the country for 2014, compared to 30th last year. A highly skilled workforce, as well as increasing wealth and easier-to-attain credit, will stimulate growth in this city’s real estate market.
Pictured: Home for sale in Salt Lake City ($5,875,000)
Seattle, WA
Job growth: 2.5%
Construction permits (relative to average for area since 1990): 99%
The growth of commercial aerospace manufacturing and the tech sector will make Seattle attractive for investors in 2014.
Seattle is the nation’s sixth-strongest market when considering the investment, development, and homebuilding sectors.
Pictured: 970 NW Elford Drive, Seattle ($4,995,000)
Tulsa, OK
Job growth: 2.0%
Construction permits (relative to average for area since 1990): 100%
In 2013, Tulsa home sales were up 10 percent from the year before. In fact, the 10,955 homes sold this year made this January-October the best of that period since 2007.
Construction activity was also strong in 2013, and the trend is expected to continue.
Pictured: 7219 S. Evanston Avenue, Tulsa ($4,950,000)
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