First time-buyers beware
When it comes to the benefits of real estate as an investment, property values are king, and we’re in a really good place for property values.
More and more markets are on the up and up, and while that’s great for current investors, it can make it intimidating for first-time buyers to get in the game.
The National Association of Realtors pulled together some data on home prices to determine which states (and regions) reflect the hottest real estate markets in the country.
According to their press release, the compared valuations from the American Community Survey conducted in 2005 against the data from 2016.
This data is cross-referenced with the Federal Housing Finance Agency’s House Price Index.
Continuing an upward trend
Let’s start with the Northeast, an area traditionally known for high home prices.
On average home prices for Northeastern states grew by 3 percent. You might expect a New York or Boston to lead the way in price growth.
Surprisingly, Pennsylvania home prices grew by 38 percent, the largest of all the states in that region.
Other states with double-digit property value growth include Vermont (29 percent), New York (19 percent) and Maine (14 percent). On the other side, Rhode Island saw a 9 percent decrease in home prices. The only other state that saw a decrease was New Jersey, with an average one percent decrease in home values.
West doing well
The Western region showed similarly surprising results in terms of growth.
Where you might expect California to show strong growth, they are the second-worst state for growth, showing a one percent increase in more than ten years.
Instead, Montana and Wyoming, with 79 percent growth and 66 percent growth, respectively, topped the regional list.
Many other states saw an increase of 40 percent or more in values, including Utah, Idaho, Oregon, New Mexico, and Colorado.
Nevada is the lone loser in this region; property values decreased 16 percent in that state.
You go Midwest, you go
Thanks to the regional growth over the last ten years, property values in the South are on a tear; no states in this region saw negative growth.
Louisiana leads the pack with 56 percent growth, and Texas is close behind with 53 percent growth. Florida shows the lowest growth at 2 percent.
Finally, the Midwest region is home to the state with the highest property growth.
At a whopping 103 percent increase in value, North Dakota leads the entire country in property growth value.
Second to North Dakota is South Dakota, with 53 percent growth.
Like the South, no states in the Midwestern region saw negative property value growth. Illinois’ median home prices remained the same.