Posted 03/06/2018


Bye, big metros: Secondary housing markets see spike

housing markets

Aly J. Yale

The Mortgage Reports Contributor

Prices, inventory issues drive buyers toward outlying cities

It seems home buyers are starting to look outside major metro areas – and even major suburbs, in order to find their dream homes. According to new data from, demand is rising in outlier housing markets across the nation, with Spokane, Washington leading the pack.

Verify your new rate (Mar 21st, 2018)

Outside the lines

As home prices in major metros and surrounding suburbs grow, buyers, are looking further out to find the right fit. And according to Javier Vivas, director of economic research at, it’s causing a surge in demand in some of the nation’s secondary housing markets.

“Buyers have traditionally sought refuge in the suburbs during times of high home prices,” Vivas said, “but with today’s record highs, even the suburbs have gotten pricey, which has demand flooding outward as options disappear and prices move further out of reach in top job hubs.”

Forecast predicts boost in housing inventory, sales in 2018

According to, inventory issues play a big role.

“One of the largest factors driving people to these markets is inventory availability,” reported. “Approximately 1.3 percent of all the homes in these areas are available for sale, compared to 0.9 percent of homes in the top 100 largest U.S. metros.”

Verify your new rate (Mar 21st, 2018)

Where they’re heading

Fortunately, there are still many markets where affordability, availability and a healthy local job market merge. Dubbed “America’s Top 10 Markets to Watch,” ranked these up-and-coming secondary home markets based on home prices, inventory levels and job availability.

Spokane came out as the clear winner, with a median listing price of $264K, a median income of $51,000 and projected job growth of 2.7 percent for the year. The majority of searches for Spokane properties came from nearby Seattle, where the median price is $500,000.

Don't have deep pockets? Avoid buying a home in Washington

Portland, Maine took the No. 2 spot, while Knoxville, Tennessee took third. Rounding out the top 10 were Deltona-Daytona Beach, Florida; Boise, Idaho; Jacksonville, Florida; Charleston, South Carolina; North Port-Sarasota-Bradenton, Florida; Bakersfield, California; and Chattanooga, Tennessee. Chattanooga has the lowest median home price on the list at $230K, while Charleston had the highest, at $364K.

Get today’s mortgage rates

Want to get in on one of these up-and-coming outlier markets? Shop around and see what mortgage rates you qualify for today.

Verify your new rate (Mar 21st, 2018)

Aly J. Yale

The Mortgage Reports Contributor

Aly J. Yale is a mortgage and real estate writer based in Houston. Connect with her at or on Twitter

The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.

3 Testimonials

Deborah C. Television Crewer

The Mortgage Reports is part of my morning routine. As I read, I learn more, and have come to understand the mortgage industry. I can't thank you enough!

Ron Z. Real Estate Agent

I am a full-time Realtor and I look forward to daily updates from The Mortgage Reports. The advice is useful and the insight is important. Thank you!

Mohammed Y. Retired

The Mortgage Reports is informative and I read it daily. I am grateful for the knowledge I have gained.

2018 Conforming, FHA, & VA Loan Limits

Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)