According to the latest research from GoBankingRates, some regions still show potential for property appreciation amidst the current landscape. Analysts examined the average home prices in major U.S. cities recorded by Zillow as of January 2024, identifying areas that experienced the most rapid price increases over the past five years.
Among them, Atlantic City in New Jersey emerges as the prime location for real estate appreciation. The average home price in the area has reached $218,761, marking a 102% increase since 2019, with a 16% growth in just the past year. Following closely is Waterbury, Connecticut, with a median home price of $249,073, rising by 100% over five years, and 15% in the past year alone. Other top-ranking areas include Lewiston, Maine; Mercedes, Texas; and Torrington, Connecticut.
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Meanwhile, it's noteworthy that neither New York nor California cities made it to the top 25. Overall, the national average home price in January 2024 stood at $343,951, a 50% increase since 2019, with a 3% growth last year. In this ranking, New Jersey stands out as the top-performing state, with nine cities making the list, followed by Florida and Tennessee with four cities each.
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Despite the continuous rise in home prices in some areas, some experts remain cautious about the future of the real estate market. They warn that amidst rising mortgage rates and changes in homeownership structures, home prices may face the risk of adjustment. Additionally, the shortage of housing supply is considered a significant factor driving up prices.
Nevertheless, homebuyers and investors need to carefully weigh various factors when making decisions. Apart from considering market factors and investment returns, it's essential to gain in-depth insights into local market conditions and long-term trends. Market fluctuations are inevitable, so it's advisable to devise rational investment strategies to mitigate potential risks and seize opportunities. Regardless of how the market changes, prudent investment and comprehensive understanding will be the keys to success.
