While many people are still hesitant to truly invest in the housing market, the fact is that the market is continuing to improve and stabilize, and home sales are steadily increasing. With the recent U.S. recession and the burst of the housing bubble in 2007, those planning to relocate around the country have been wary to become homeowners. However, recent reports indicate that a number of housing markets across the U.S. are growing stronger, meaning that now may be the best time to consider purchasing a home. Take a look at these current U.S. housing market trends that illustrate some of the best regions and states to invest in a new home:
New housing sales up in 2015
The road to recovery for the U.S. housing market has been a long and winding one, but in 2015, industry experts have reported more solid new-home sales. A recent report from the National Association of Home Builders stated that sales for newly built, single-family homes are up 5.4 percent across the U.S., with some specific regions tallying even higher numbers. David Crowe, chief economist for the NAHB, expressed his confidence these numbers indicate the housing market has become more secure than ever in the past decade.
"Today's report is in line with other government data and improving builder sentiment and shows a gradual but consistent housing recovery," Crowe said in a statement. "As job growth and consumer confidence continue to strengthen, the housing market should make additional gains this year."
"The Northeast has experienced a 23.1 percent increase in new home sales."
New home sales were found to be the highest in the Northeast, where there was a 23.1 percent increase in the past year. The South and West regions of the country also reported increases of 5.8 percent and 6.7 percent respectively, while new house sales in the Midwest reported a decline of 6.9 percent.
Finding the most stable U.S. housing markets
While not everywhere in the country is experiencing a flourish in housing sales, there are certainly some regions that are reporting significantly lower home prices with tremendous upside on maximizing value. Two of the biggest factors that lead to stronger housing markets are population and job-growth rates. A report by Forbes revealed that these two elements had remarkable influence on housing prices. Austin, Texas was listed as the No. 1 housing market in the U.S. to invest in, with an average home price of just over $261,000, significantly lower than the average sale price of new homes sold in the country, which as of July 2015 was $361,600 according to the United States Census Bureau.
Austin, Texas also reported a 3.6 percent increase in its annual job-growth rate, compared to the national average of an increase of 2 percent. The Atlas Van Lines 2014 Migrations Patterns Study also reported that Texas itself was an inbound state, with more than 55 percent of the total moving shipments going into the state, rather than out of it.
Rounding out the top five of Forbes' report was Provo, Utah, Houston, Texas, Orlando, Florida and Dallas, Texas, indicating that Texas is overall one of the more secure housing industries in the country. The Atlas Migrations Patterns Study also reported that more Americans are continuing to relocate south in general, as Florida and Mississippi became inbound states in 2014, with Florida being in the top three states in the country with the highest number of moves.
As these trends display, both population and job growth continue to be two primary factors that strengthen local housing markets. If you're considering investing in a new home in the near future, be sure to stay up to date with both of these economic trends to ensure you get the maximum value when investing in a new home.