(NEXSTAR) – U.S. home prices are still surging as the housing market continues to boom amid the COVID-19 pandemic.
A new report from Realtor.com shows many of the top housing markets going into 2022 will be tech hubs in the Mountain West and the Midwest. Experts say these areas have strong economies, low unemployment rates, and considerable job growth.
The average listing price for the projected hottest housing markets for 2022 reported an average listing price of $431,000 in November, well above the national median price of $379,000. These cities offer more options for those moving in than other big metropolitan areas like New York and San Francisco, the report explains.
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“Our top housing markets are attracting remote-minded workers, possibly interested in snagging a big-city salary while still enjoying the quality of life that these generally smaller areas afford,” says Danielle Hale, Chief Economist with Realtor.com.
In the report, Realtor.com analyzed the expected growth of home sales and prices in 2022 and compared them with the year before in the nation’s 100 largest metropolitan areas. Factors included previous sale prices and the number of sales; the amount of new construction; and previous and anticipated economic, household, and income growth.
The top housing markets for 2022 are:
These aren’t only the hottest housing markets for the new year – they’re also among the most overpriced. All 10 fall among the top 50 metropolitan areas where homes are selling above historical prices.
In a report from Florida Atlantic University, researchers used open-source data from Zillow or other providers to calculate the 100 most overpriced or underpriced metropolitan cities in the U.S. The first report was issued in July 2021 with a new report released each month, the latest being from November.
FAU gives each metropolitan area a score. A positive score indicates a premium, meaning the average property in a metro is selling above its historical implied price. A negative score represents a discount, meaning the average property is selling below its historical implied price.
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Three of the housing markets expected to be the hottest next year are among the top 10 most overpriced markets – Boise with a 78.36% premium, Spokane at 48.94%, and Salt Lake City at 47.32%. Tampa comes in among the top 15 at 39.94%. Indianapolis, Columbus, and Seattle all have premiums above 30% with Greenville close behind at 27%. Providence and Worcester have the lowest among the 10 housing markets, coming in at 14.61% and 17.44%, respectively.
According to FAU, just two metropolitan areas are seeing discounts on home prices: Baltimore and urban Honolulu.
Home prices across the country surged again in October as the housing market continues to boom in the wake of last year’s coronavirus recession.
During the week of Christmas, mortgage rates fell to 3.05% for the benchmark 30-year, fixed-rate and 2.66% for the 15-year fixed-rate home loan. The persistently low rates signal that credit markets appear more concerned about the omicron variant depressing economic growth than about the highest inflation rates in nearly 40 years.