Hottest Real Estate Markets - Sun Belt is #1

The Sun Belt dominates Zillow’s list of hottest housing markets (click for article) for the second year in a row.

The housing market in 2022 is expected to remain hot overall. And Nashville looks to be among the leaders (anticipated at #6). The Zillow author points out that many of the same trends that drove the market to new heights are still firmly in place.

Price Growth
Home value growth in 2021 consistently broke records, both nationally and in many local markets. This growth has been fueled by historically low mortgage interest rates, pandemic-influenced decisions on where households want to live, and demographic shifts – both from aging millennials and retiring/downsizing boomers – that have all combined to keep housing demand very high. At the same time, inventory of available housing has been limited, as builders play catch-up after years of underbuilding and sellers list their homes in fewer numbers.

Inventory & Velocity
Both restrictive supply overall – fewer sellers willing to sell, fewer homes built by builders – and sky-high demand can both lead to low inventory. When demand is very high, even a decent number of homes on the market can still sell very quickly given a high number of buyers, contributing to an overall low level of homes on the market at any given time even if the pace of new listings is healthy.

Job Market & Building
As the labor market recovers, major metros have added more jobs than new units – despite the pandemic.

Demographics
Baby Boomers and millennials represent two enormous generations, both very active in the housing market. Boomers are staying active and purchasing homes in the Sun Belt as they retire and/or move to be closer to grandchildren, etc. And millennials are just beginning to age into their prime home buying years as they hit their early-mid thirties, a time when many Americans traditionally begin to settle down and start families

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