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It’s no secret the housing market in the United States has been heating up over the past couple of years, with most markets up by double-digit percentages in the past year alone. Most industry experts are projecting the gains to continue in 2014, but at a slower pace than in recent years.
According to Zillow, the average home value in the U.S. is projected to rise by an additional 4.6% over the next year, but there are some markets where double-digit gains are expected to continue. Here is a breakdown of some of the markets that are expected to be 2014’s hottest.
Vallejo, Calif. — 23.9%
This city of about 116,000 people is part of the San Francisco Bay Area. Vallejo has had more than its share of financial troubles in the past, having declared Chapter 9 bankruptcy in the wake of the financial crisis in 2008. The city’s unemployment rate has dropped from 15% to 10.1% since emerging from bankruptcy in 2011, which is certainly helping the surge in home prices.
Stockton, Calif. — 22.7%
This city of 300,000 people is the second-hottest real estate market in the country for 2014. Stockton was one of the hardest-hit markets in the country by the collapse of the sub-prime lending market in 2007, and it had the highest foreclosure rate in the nation. In 2007, one of every 30 homes in the city went into foreclosure.
The median price of a Stockton house fell by 44% in 2007, and by an additional 39% in 2008. Stockton residents should be able to breathe a little easier by the end of 2014, but they are still a long way from even.
Yuba City, Calif. — Projected gains of 20.3% in 2014
This Northern California city is in Sutter County and has a population of just fewer than 65,000. Yuba City is home to Sunsweet Growers, the largest dried-fruit processing plant in the world, which has earned the city the nickname of “prune capital of the world.”
One possible reason for the drastic climb in housing prices is the rapidly improving employment situation in the area. Yuba City has a much higher unemployment rate than the national average, but it has improved from 16.4% to 13.9% over the past two years. When more people are employed, they have more money to buy a house. Makes sense.
Agencies
