Record-high home prices do not necessarily indicate a housing bubble, and while real estate in some areas of the U.S. is seeing rapid appreciation, those markets are also showing signs of stability. Realtor.com®’s research team sought to identify metros where home prices are soaring but a housing bubble is most likely not a threat.
“These are the Goldilocks of today’s housing market,” says Javier Vivas, manager of economic research for realtor.com®. “Not too hot and not too cold, these markets present the right balance of housing and economic conditions for buying and selling activity to evolve naturally.” No market is immune to a housing bubble, but realtor.com® researchers note these cities have strong, diversified industries that are supporting their rising price appreciation.
Realtor.com®’s research team compared 150 of the largest housing markets where price appreciation was between 4 percent and 13 percent in 2016; the supply of homes for sale was ample (between three and seven months); affordability remains strong; the median number of days on the market is low; the new-home market has recovered since the recession; and more.
Realtor.com® named the following eight housing markets as the most stable in the country:
- Fort Collins, Colo.: 7 percent annual price growth
- Madison, Wis.: 10 percent
- Durham, N.C.: 10 percent
- Honolulu: 9 percent
- Greenville, S.C.: 10 percent
- Ann Arbor, Mich.: 10 percent
- Manchester, N.H.: 9 percent
- Salem, Ore.: 11 percent
Source: “Afraid of a Bubble? Buy Without Fear in These Top 10 Stable, Growing Markets,” realtor.com® (April 3, 2017)