Real Estate Markets To Watch In 2018
So, you’ve decided to invest in real estate! That’s a smart choice, but be careful – you don’t want to make uninformed decisions and lose your hard-earned money. Besides consulting professionals, you should do all the research you can to make sure you’re making all the right choices. We’ve previously given you advice on the best real estate markets in 2017 – now take a look at the information we’ve got lined up on real estate markets to watch in 2018!
How to pick real estate markets to watch
Before providing individual examples, we’ll take a look at some of the basics of finding real estate markets to watch. Here are some general factors you will want to consider when choosing a market to invest in:
- Population – you should definitely take a look at the demographics when trying to spot emerging trends in real estate. One of the most important factors of a local economy is a booming population. Especially look at the migration numbers – a lot of people moving into a city is a sure sign of a real estate market to watch.
- Local Economy – the Gross Domestic Product (GDP) of the area is a big factor in economic health. A high growth rate of GDP is a good sign for the local real estate market. This is public information, so you should be able to easily find it online for any city.
- Employment – Obviously, people will buy real estate in areas where there is plenty of work available. Looking at employment statistics for this year is a good step towards finding real estate markets to watch in 2018. This means looking at the unemployment rate and the total number of people employed.
- Public policies – The government plays a big role in shaping the local real estate market. You should find out if the local taxes are high or low. Low taxes are a good sign of real estate markets to watch. High taxes mean the local market will be more expensive, so you should look for markets which receive government subsidies.
- Crime – This seems obvious, but high crime rates aren’t good for real estate prices. It’s a good idea to check out local crime rates of areas you think might be top real estate markets.
San Jose, California
One of the real estate markets to watch in 2018 is definitely San Jose, California. Experts are predicting the value of homes in this hot emerging market will increase 8.9% over the next year. The warm and inviting San Jose has lured people with, among other things, its average income of over $100,000 and more than 70 000 job openings. Investors, especially those who plan on renting their properties, are betting on a general trend of urbanization. They’re counting on young renters who are drawn to increasing entertainment and job options, as well as bars, shopping malls, and restaurants.
Seattle has been enjoying a great real estate boom for some time now, not in the least hampered by Amazon’s potential opening of a second headquarters there. A number of other large-scale projects have attracted realtors to the market, as well as the 100k new residents who have moved here in the past 10 years. It’s no surprise people have been gravitating towards Seattle in search of emerging trends in real estate. The home of Starbucks boasts an average yearly income of around $78,000, a housing value increase of 5.4%, and over 100k new jobs this year.
Salt Lake City, Utah
Salt Lake City is predicted to achieve a solid 4.5% growth in home sales this year. It’s got the winds of the economy at its back, with its nearly 3% job growth being one of the strongest in the USA. The business and culture capital of the state of Utah has become one of the top real estate markets in the country. The construction industry has been struggling to keep up with demand for new housing. Salt Lake boasts a strong local economy, with growing disposable income averages and affordable rents. The city can thank its well educated and young workforce for rapid growth rates in all sectors.
Remember when we talked about how the population is an important factor for real estate to watch? Austin is an excellent example. In this city, residents between the ages of 15 and 35 are almost a third of the population! The vibrant cultural scene is drawing young residents from across the country. If you’re looking to rent an apartment, just make sure to cover your bases when you find a place. There are always a few things to do after moving to a rented apartment you must not forget! Also, the growth rate of the entire population of Austin is rising above the national average. Remember, this is one of the signs of a strong economy that can potentially support one of the hottest real estate markets in 2018.
Austin’s status as the tech capital of Texas is another major boon to its real estate market. The high-paying jobs of the tech industry coupled with below-average rents make Austin a joy for young renters. The positive outlook of the Austin real estate industry is also evident by its high-end market. There’s a noticeable number of luxury towers and skyscrapers being built downtown.
How to invest in top real estate markets in 2018
If you’ve made your choice of a real estate market, the next logical question is – how to invest? We’ll give you the most basic tips on how to behave in top real estate markets in 2018. Bear in mind that this year, real estate is a seller’s market. This means you shouldn’t be surprised at a lot of outrageous offers, and you shouldn’t expect discounts. Make sure you don’t do business without a good, trustworthy real estate broker. You’ll need him to be a professional who knows the market and can accurately predict long-term local trends. A local broker will also be able to advise you on the regional legislative and tax codes, which are important for any real estate market. Here are an important few tips on how to find a good real estate agent.
If you work with professionals, choose a market carefully, and consider all real estate markets to watch in 2018 in your decision-making process!