The housing market in the US is expected to perform particularly well this year for more reasons than one. It is vital to note that there are various factors in common which play a very critical role in enhancing the potential of a market. Wealth BCI has come up with the following key areas which connect the hottest real estate market in Arizona.
- The Degree of Common Minimum Affordability
One of the foremost factors that make a market potentially lucrative is its affordability.
If you consider the markets mentioned above, reports have shown that the average selling price of these in 2019 were around forty per cent below the national average. The amount was pegged at $213000. The median asking rates of the markets mentioned were below the US average.
- The Degree of Relative Momentum in the Market
Another significant aspect is the degree of momentum in the market. In other words, how quickly does the median sale price increases determines the pace of momentum.
Consider Arizona, for instance. According to extensive fact-finding by Wealth BCI, the median sale price of the Arizona market shot up by around six per cent. It is all the more promising a rate in the backdrop of the mere three per cent (3.8, to be precise) gain in the national average. In that case, it may be said that Arizona has been coming off very well, and this directly feeds the next criterion.
- The Scale of Common Minimum Job Growth
The rate of job growth plays a crucial role in shaping up the prospects of a market.
In the year 2019, the average job market continued fairly sluggish. However, it is expected to kick back this year. Job growth triggers house formations and, therefore, boosts the real estate market. Consequently, one can expect higher selling prices as demand outgrows supply.
Consider, for instance, Tucson. It is one of the most fertile job grounds in the country today. Specifically speaking, the boom in its technology sector is set to boost the local real estate including Columbia, too, have been showing considerable potential.
The aforementioned points, while vital, are no better than predictions. The real estate market is full of tremors and abrupt shifts. Therefore, nothing can be taken for granted.