Austin Tx is no longer Zillow’s hottest housing market in 2022
February 16, 2022 | Front Porch Realty
Last week Zillow released its top ranking for the top 10 hottest housing markets in the United States
Last week Zillow released its top ranking for the top 10 hottest housing markets in the United States with Tampa Florida taking the number 1 position pushing Austin down in a drastic swing to the 10th spot.
According to the study, the housing market in 2022 is sign to stay hot for Florida with three positions on the list going to Florida cities.
Austin has been previously ranked by Zillow as one of the hottest housing markets in the country but it slipped to the bottom of the list for 2022.
Zillow ranked Tampa and Jacksonville as the hottest housing markets for the year, according to the report the two cities popularity is due to relative affordability and high job growth.
Here is the top 10 markets in the U.S. for 2022:
- Tampa, Florida
- Jacksonville, Florida
- Raleigh, N.C.
- San Antonio, Texas
- Charlotte, N.C.
- Nashville, Tenn.
- Atlanta, Ga
- Phoenix, Arizona
- Orlando, Florida
- Austin, Texas
The real estate company mentioned markets in the Sun Belt has historically not been sensitive to rising mortgage interest rates and or a slowing stock market.
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As a result of shifting demographics and continuing inflation
As a result of shifting demographics and continuing inflation, the price for monthly rent and monthly mortgages has risen across the country. In hotter housing markets, the growth is even more noticeable.
n 2022 the hottest house markets will be buoyed by a combination of strong forecast home value growth, strong economic fundamentals including high job growth, fast-moving inventory and plentiful likely buyers.
While values are going up and jog growth continues, restrictive supply overall is heating up the market. There aren’t enough homes available to sell and meet the demand of the number of homebuyers looking for somewhere to live.
Austin and other major metropolitan areas are seeing fewer sellers willing to sell, fewer homes being built and sky high demand.
One of the largest risks for the housing market in 2022 will be increased interest rates, expected to make home loans more expensive for new buyers.
The interest rate increases are something forecasted by the U.S. Federal Reserve to deal with inflationary pressures. The U.S. central bank doubled the speed of its expected tapering off of stimulus spending to assist with decreasing inflation over 2022.
The increased demand, along with homebuilding unable to keep up due to material shortages caused by supply chain issues, means that inventory will likely remain low in the foreseeable future.
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The change in interest rates will have an impact on mortgages and other loans
The change in interest rates will have an impact on mortgages and other loans, with three planned rate increases over the next year. As more of the younger generation gets to an age where they’re buying homes and inventory remains low, the competition for existing homes will spike along with demand.
The increased demand, along with homebuilding unable to keep up due to material shortages caused by supply chain issues, means that inventory will likely remain low in the foreseeable future.
The study said the two big active demographic groups in the housing market are baby boomers and millennials.
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All housing costs are up, from rent to mortgages
For now, all housing costs are up, from rent to mortgages, alongside inflation and fuel prices.
If you are considering selling your home in Austin we offer a free home assessment just reach out today and talk to our top broker for more info.
