From the stalwarts to the tech magnets and comeback kids, the new year is likely to see several types of markets. Redfin recently highlighted six “housing market personas” that they believe will be driving the continued recovery in 2015. Here’s an overview of the personas and the pros and cons of each:
- Stalwarts: “Strong economies, lots of Millennial buyers, yet still affordable.”
Good news: Lots of jobs and booming economies.
Bad news: Picky buyers and lack of selection.
Markets that fit this persona: Chicago, Houston, and Dallas.
- Topping Out: “Sky-high prices that will peak and even dip into negative territory this year.”
Good news: Strong economies and well-paying government jobs.
Bad news: Bidding wars and low inventories.
Markets that fit this persona: San Francisco; San Jose, Calif.; and Washington, D.C.
- Tech Magnets: “Tech-driven economies, young wealth; getting more expensive, with growth limited by zoning or geography.”
Good news: Lots of wealthy households.
Bad news: Little room to expand, and suburbs losing popularity.
Markets that fit this persona: Boston, Seattle, and Denver.
- Comeback Kids: “Markets hit hard by the financial crisis that will see a pickup in sales in 2015.”
Good news: Lots of investors and broad-based job growth.
Bad news: Few affordable single-family homes, and new construction mostly limited to the luxury market.
Markets that fit this persona: Miami; Atlanta; and Orlando, Fla.
- Sleepers: “Not in the news much, but mid-priced cities with good economies and job opportunities.”
Good news: Lots of new development and big tech-job gains.
Bad news: Not many affordable homes available.
Markets that fit this persona: Baltimore; Philadelphia; and Raleigh, N.C.
- Down But Not Out: “Hit hardest by housing crisis, fewer jobs, still working through foreclosures.”
Good news: Lots of homes for sale.
Bad news: Overzealous builders and cookie-cutter remodels.
Markets that fit this persona: Las Vegas; Phoenix; and Tampa, Fla.
Source: “From Stalwarts to Comeback Kids and Sleepers, Redfin Names 6 Housing Market Personas for 2015,” Redfin blog (Jan. 5, 2015)