New York and San Francisco are setting the price surge pace for the country’s real estate market. Real estate prices in San Francisco defy explanation, and New York real estate prices are on steroids. Foreign buyers, especially Asian buyers, are dumping loads of cash into those markets, and some of the other big cities are experiencing a real estate twilight zone too, in terms of property prices. But the super high-end market in New York is slowing down, and Zillow Real Estate Services is projecting three of the five biggest cities in the U.S. will not grow as fast in 2017. The real estate markets will continue to have strong growth in medium size cities that are not on a coast.
The real estate market across the country is on fire. Homes that sold for 80,000 in 2000, are selling for $90,000 today. And a $500,000 home in 2000 is now selling for more than $600,000 in cities across the country. When New York sales are not in East Coast sales figures, sales in the Eastern part of the country are not as strong as sales in the South and the West. Home prices will increase by at least three percent across the U. S. in 2017, but only two of the five largest metropolitan areas will be above that average. New York will still be the top performer at 3.6 percent growth, and Houston will be next with growth of 3.3 percent.
The Houston real estate market may surprise some folks, because homes prices in Los Angeles, the second largest city, will only increase by 1.5 percent. Even Chicago prices are below average at 2.9 percent. And Philadelphia prices will just feel a 2.8 percent bump from 2016 prices. Other cities around the country will enjoy prices increases that range anywhere from 3.6 percent to 4.4 percent, but Houston is the city that has everyone shaking their heads. The oil business is gasping for air, and Houston is a big oil town. But Houston is more than a one-industry town, according to HLHomes and other Houston real estate companies. HLHomes buys homes in Houston for cash. Click here to find out more about HLHomes.
A Greater Houston Partnership report shows that the job market in Houston is booming. More than 120,000 new jobs in healthcare, education, construction, manufacturing, and engineering gave Houston the energy to overcome the alarming press about the oil business. And thanks to those businesses, new retail service industry, and retail jobs are driving home prices up. The Greater Houston Partnership is projecting an increase of 60,000 to 70,000 jobs each year for the next five years.
There’s no doubt about it. Houston’s real estate market is back after struggling through the 1980s, 90s and the early 2000s. Some Houston real estate brokers credit the expansion of the Panama Canal for the bullish real estate market. The Port of Houston is already the busiest port in the country, and the Panama Canal expansion means additional business for the port.