Redfin recently revealed the hottest neighborhoods of last year, but that was last year. What about the neighborhoods that are going to be hot this year?
Redfin has the answers for that too.
Zillow recently predicted that Southern housing markets will be hot this year, and Redfin’s report backs that up.
Even though the top 10 neighborhoods that are projected to be the hottest are scattered across the nation, a heavy amount of the full list of neighborhoods are in the South.
In order to determine which neighborhoods will be hot this year, Redfin identified the neighborhoods with the greatest year-over-year growth in listing pageviews on Redfin.com and spoke to agents about what areas are seeing rising interest from homebuyers.
More specifically, the company’s view of the hottest neighborhoods is based on year-over-year growth in median pageviews of listings by neighborhood on Redfin.com from Jan. 1, 2018 through Nov. 30, 2018 to Jan. 1, 2019 through Nov. 30, 2019, and on agent insights.
According to Redfin, the neighborhoods had to have at least 50 listings in both 2018 and 2019, and 20 median views per listing to make the list.
The company notes that while some of the neighborhoods on the list may not meet the conventional definition of “hot,” they are still trending among homebuyers.
The majority of the hottest neighborhoods have median home sale prices that are less than $500,000, and half are in Virginia, Florida, North Carolina and Tennessee.
Seven of the top 10 neighborhoods on the list have median sale prices of less than $500,000, while three fall below the 2019 national median of $279,900. Half of the neighborhoods have median sale prices that are less than their respective metros, the report said.
“The affordability crisis has caused people seeking single-family homes to search in areas they may not have considered before,” said Redfin chief economist Daryl Fairweather in a 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 reason the Southeast is popular? According to Redfin, more corporations are opening hubs in that region. Microsoft is setting up shop in Charlotte, a Volvo plant is coming to Charleston and money manager BlackRock is going to Atlanta.
“The overall U.S. economy is doing better, so people feel more comfortable leaving the biggest job centers for small job centers,” Fairweather continued. “Plus, the southeast is becoming more metropolitan, with new restaurants and amenities that cater to younger people.”
So, without further adieu, here are the top 10 hottest neighborhoods to watch in 2020:
- Willowsford; Ashburn, Virginia (Washington, D.C. metro)
- Bal Harbour; Fort Lauderdale, Florida
- Wildwood; Charlotte, North Carolina
- West Arvada; Colorado (Denver metro)
- Waverly Hills; Arlington, Virginia (Washington, D.C. metro)
- Adamsdale; North Attleboro, Massachusetts (Providence metro)
- Poplar Grove; Indianapolis
- West Ridge; Woodinville, Washington (Seattle metro)
- Raleigh; Memphis, Tennessee
- Old Town Rocklin; California (Sacramento metro)
Read the rest of the hottest neighborhood list here.