Various forecasts project home prices will increase anywhere between 3-5% in 2016, but some housing markets stand to perform better than others as the year unfolds.
To determine the “hottest” real estate markets for 2016, online real estate marketplace Zillow analyzed data from its Zillow Home Value Index (ZHVI), recent income growth and current employment rates. The outcome produced results that Zillow scaled and combined equally to then form a “hotness score.”
Earning top marks for 2016, the Denver metro area is forecasted to see a 5% increase year-over-year in Zillow’s Home Value Index, which is a time series tracking the monthly median home value in a particular geographical region. Also adding to Denver’s favorable forecast is a low unemployment rate at 3.1%, according to Zillow’s analysis. Among the city’s hottest areas are the neighborhoods of Delmar Parkway, Highline Villages, Centretech and Ruby Hill.
Taking second honors is Seattle, which is expected to see its ZHVI reading increase 5.4% year-over-year in 2016. The city’s Northwest Bellevue area is the hottest neighborhood with a median home value predicted to grow 9.2% to $1.15 million year-over-year. Other hot spots include Seattle’s University District, Holly Park and Olympic Manor.
Down south, the Dallas-Fort Worth metro area joins the ranks. Here, Zillow predicts a 5.6% annual growth in the ZHVI, driven by the city’s strong 4% unemployment rate and solid income growth. Notable neighborhoods include Holford, Oak Lawn and M Streets.
For the fourth-ranked hottest housing market of 2016, Zillow heads to the east coast, to Richmond, Va.
“Richmond, VA is seeing the strongest income growth of the top 10 markets, and unemployment is low,” remarks Zillow, which forecasts the city’s ZHVI to increase 2.2% year-over-year.
In terms of home value growth, Zillow says the neighborhoods of Church Hill, Carytown and The Fan should be among the “hottest hoods.”
Closing out the top-five cities is Boise, Idaho, which is projected to see a 4.7% increase in its median home value this year.
View Zillow’s full list of 2016’s Hottest Housing Markets.
Written by Jason Oliva