MARKETS & TRENDS
Boston, MA
LOCAL MARKET MONITOR
Second Thoughts
JOB GROWTH (1 -YEAR)
HOME PRICE INCREASE (1-YEAR)
PRICE ABOVE INCOME PRICE
AVERAGE HOME PRICE
LOCAL MARKET MONITOR
INVESTING IN THESE SECOND-STRING MARKETS MAY BE YOUR BEST BET IN 2019.
2.6%
8%
2%
$280,300
Charlotte, NC
2.5%
6%
6%
$426,300
Boston, MA
by Ingo Winzer
2.3%
8%
-18%
$213,000
Indianapolis, IN
W
hile some big markets like Seattle, San Francisco, Denver
year) is at or above the national aver- age; and - crucially - where current home prices are not in over-priced territory (as measured by how far they're above the income price). When prices are much more than 20 percent higher than the 'income' price, the risk of a bubble increases. In places like Miami and Seattle, they're now 40 percent higher. Some of these 10 markets may be less attractive than others - Boston homes are expensive, the Cincinnati economy is on the weaker side, Nash-
ville isn't growing as fast as it was last year - but they're safer bets at a time when investors in other markets might be getting a bit nervous. •
2.3%
7%
3%
$323,300
Philadelphia, PA
and Miami are pretty well over-priced and may even be headed into bub- ble territory in the next year or so, a number of markets in the second string may be the better bets for investors in 2019. We've listed 10 markets where demand for housing (as measured by the increase in home prices in the past year) is good but not too good; where the local economy (measured by the increase in jobs in the past
2.3%
9%
9%
$255,100
Fort Worth, TX
2.2%
11%
-3%
$256,900
Atlanta, GA
IngoWinzer is president of Local Market Monitor, which analyzes conditions in 300 U.S. markets, using such economic data as home values and growth in employment and population. Winzer, who has analyzed
1.9%
8%
-2%
$212,400
Kansas City, MO
1.8%
8%
6%
$276,800
Minneapolis-St. Paul, MN
real estate markets for more than 20 years, was a founder and executive vice president of First Research, an industry research company that was acquired by Dun & Bradstreet in March 2007. He is a graduate of MIT and holds an MBA in fnance from Boston Univer- sity. Winzer resides in Cambridge, Mass. www.localmarketmonitor.com.
1.7%
10%
9%
$303,800
Nashville, TN
1.5%
6%
-14%
$205,200
Cincinnati, OH
Source :: Local Market Monitor, 2019
78 | think realty housing news report :: february / march 2019
thinkrealty . com / hnr | 79
Made with FlippingBook Online newsletter