Southern housing markets could see boom in 2020
A panel of real estate experts and economists believe the hottest markets of 2020 will all come from below the Mason-Dixon Line and that California prices will fade, according to Zillow.
Overall, the Zillow Home Price Expectations Survey showed an expected growth of 2.8% for home values in 2020. The metro areas with the highest expectations were in the southern half of the country.
About 83% of panelists said housing prices in Austin, Texas will outperform the national average. Atlanta came next at 63%, followed by Charlotte, N.C., and Nashville, Tenn., which were tied at 59%. At 55%, Denver was the last market where more than half of the panelists anticipated the market will overperform.
"Having subjected buyers to a crucible of fierce competition for multiple years, many West Coast markets hit an affordability ceiling that set off declining home values in the most expensive of these," Skylar Olsen, Zillow's director of economic research, said in a press release. "Indeed, this price correction — a clap back from having appreciated with too much exuberance in the recent past — pushes many previously hot markets to the bottom of our experts' list.
"At the top of the list are metros still providing relative affordability and thriving, amenity-rich communities that appeal to younger adults willing to make a move. These features, plus the ability to grow and add housing in the future, are attractive propositions for employers and employees alike."
The biggest expected underperformers all come from California. Approximately 64% of the panelists said San Francisco will do worse than the national average. San Jose's 61% closely trailed, followed by 55% for Los Angeles, 52% for Sacramento and 47% for Riverside.