Housing affordability is driving consumers to the southeast region of the country in neighborhoods where median home sale prices are under half a million dollars, according to a new report from Redfin.
The “Hottest Neighborhoods to Watch” report notes that half of the hottest neighborhoods in the country are located in the southern states of Virginia, Florida, North Carolina and Tennessee.
Top neighborhoods are ranked by the largest year-over-year growth in page views on the online listing service Redfin.com and based on interviews with real estate agents across the country.
The report notes that seven of the top 10 neighborhoods to watch in 2020 have a median listing price of less than $500,000, and three of those are below the national median sales price of $279,900.
“The affordability crisis has caused people seeking single-family homes to search in areas they may not have considered before,” Redfin chief economist Daryl Fairweather said in a press release. “Homebuyers continue to be priced out of Washington, D.C. and New York, so you’re seeing a lot of northerners moving to the southeast, but even people from as far away as California are migrating there. The overall U.S. economy is doing better, so people feel more comfortable leaving the biggest job centers for small job centers. Plus, the southeast is becoming more metropolitan, with new restaurants and amenities that cater to younger people.”
In addition to the top-ten list, Redfin identified the top three neighborhoods to watch in 60 major metro areas across the country.
Bal Harbour in Fort Lauderdale made the No. 2 spot in the top 10 list, making it second only to the Willowsford neighborhood of Ashburn, Virginia as the hottest neighborhood in the country.
Homes in Bal Harbour had a median sales price of $747,500, compared to the Fort Lauderdale metro area median of $270,000. Those homes stayed on the market for a median 109 days and sold above list price 4.8 percent of the time.
“The location of Bal Harbour is so ideal. It’s close to everything, and you have a lot of homes on the water with ocean access. Plus, it’s not as expensive as other high-end communities in Fort Lauderdale with ocean access,” said Redfin Fort Lauderdale agent Pierre Shaheen. “There are a lot of shopping centers and big anchors setting up shop. Bal Harbour was kind of sleepy for a while, but it caught up and is now doing really great.”
In Miami, the hottest neighborhoods were Doral, Coral Gables and West Perrine, according to Redfin.
Doral had a median sales price of $248,000, substantially below the median sales price of $309,000 for a home in the Miami metro area. Homes in Doral spent a median 72 days on the market and sold above list price 2.8 percent of the time.
Coral Gables had a median sales price of $654,000, spent a median 97 days on the market and sold above list price 5 percent of the time.
Homes in the West Perrine neighborhood sold the fastest of the three, spending a median 54 days on the market. They also sold above the list price most often at 19.7 percent. The median sales price in West Perrine was $253,550.
The remaining top 10 hottest neighborhoods in the country were identified as: Wildwood, Charlotte, North Carolina; West Arvada, Denver, Colorado; Waverly Hills, Arlington, Virginia; Adamsdale, North Attleboro, Massachusetts; Poplar Grove, Indianapolis, Indiana; West Ridge, Woodinville, Washington; Raleigh, Memphis, Tennessee; and Old Town, Rocklin, California.