2019 US Housing Market Slowdown
Rapid growth in property prices has been characteristic of the US housing market for a few years now. So it makes sense that a drop in prices, as well as national sales, might have some real estate investors worried. And with property prices actually dropping in big cities like San Francisco, Dallas, and Miami (according to realtor.com), some believe it’s time to sound the alarms.
However, this slowdown isn’t such a bad thing nor is it as widespread as initially expected. For one, a slowdown provides the opportunity for first-time homebuyers and real estate investors to enter the market. And many US cities are actually still experiencing double-digit growth in property prices.
The 10 US Cities Experiencing Major Growth in Property Prices
City List Price Growth
- Chico, CA 14.7%
- Birmingham, AL 10.8%
- Spokane, WA 15.4%
- Greensboro, NC 14.6%
- Columbia, SC 16.5%
- South Bend, IN 15.4%
- Trenton, NJ 16.0%
- Reading, PA 14.2%
- Killeen, TX 13.9%
- Milwaukee, WI 14.0%
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Why Are Certain Cities Not Following National Trends?
There are various likely reasons for why the above cities aren’t seeing the same trends in property prices as the national market.
Looking at Chico, the wildfires are a big factor in the price growth. The issue comes from a mass decrease in housing supply after the natural disaster hit what was already a tight real estate market. So the aftermath of these unfortunate events is a hot real estate market with fast price growth. And while Chico is on top right now, investors and experts will keep their eyes on how the natural disaster will impact this housing market in the long run.
Other cities are gaining population that is flowing in from neighboring cities that are more expensive. For example, Spokane is a haven for Seattle residents who want to be able to buy an affordable home. This demand is driving up property prices in the city. Greensboro is feeling the same effect as residents from Raleigh and Durham flee higher costs.
The Killeen and Columbia real estate markets are also centers for population growth where new residents are driving property prices up.
Cities like South Bend and Milwaukee still have room for price growth as their economies took much longer to recover than other places in the US. Other cities with similar trends that are on the above list are Birmingham, Trenton, and Reading. All were hit hard during the crisis and took longer to recover. So as other housing markets already felt the boom of this recovery, these cities are only feeling it now.
While there is a slowdown when we look at the national picture, it’s clear it’s not happening everywhere which is a good thing for the 2019 US housing market.
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