Analysts at the listing site Zillow began the new year with fresh predictions for the US housing market, this time forecasting which US housing markets would be the hottest in 2017. The majority of markets predicted to sizzle over the next 12 months are located in the Western US.
To compile its list, Zillow looked for markets that had fast rising home values, low unemployment rates and recorded strong income growth.
Nashville, TN topped the list, having “moved beyond its country music roots to become a major healthcare employment center.” This shift helped drive Nashville to the top spot, edging out second place runner up, Seattle, WA.
Zillow anticipates Seattle will outperform the average national home growth this year, which is expected to be around 3 percent in 2017. Seattle has recorded double-digit home price growth as well as some of the fastest rent growth in the entire country.
Meanwhile, Provo, UT — one of three Utah markets that made the list — rounded out the top three. Provo had an unemployment rate of 2.7 percent, the lowest of any of the markets in the top 10.
The remaining hottest housing markets in 2017 were Orlando, FL, Salt Lake City, UT, Portland, OR, Knoxville, TN, Ogden, UT, Denver, CO, and Sacramento, CA.
“Zillow’s 2017 list highlights that jobs and opportunities are increasingly growing in smaller markets away from the coasts,” said Zillow Chief Economist Dr. Svenja Gudell in a release.
Gudell added that mid-size cities like Nashville were not only desirable places to live, but had good employment opportunities and steady economic growth. “The growth and demand for housing will drive up home prices in 2017, and these hot markets are experiencing change as more people discover them,” he said.
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