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With home values up around 21% in the past year and mortgage rates have almost doubled, according to a new report on 2022’s Best Real-Estate Markets

To determine the most attractive real-estate markets in the U.S., WalletHub compared 300 cities across 17 key metrics. The data set ranges from median home-price appreciation to job growth.

Best Real-Estate MarketsWorst Real-Estate Markets
1. Frisco, TX291. Baltimore, MD
2. Allen, TX292. Columbus, GA
3. McKinney, TX293. Baton Rouge, LA
4. Austin, TX294. Rockford, IL
5. Nashville, TN295. Cleveland, OH
6. Cary, NC296. Hartford, CT
7. Gilbert, AZ297. St. Louis, MO
8. Denton, TX298. Shreveport, LA
9. Peoria, AZ299. Bridgeport, CT
10. Richardson, TX300. Peoria, IL

Best vs. Worst

  • Daly City and San Mateo, California, have the lowest share of seriously underwater mortgages, 0.66 percent, which is 26.8 times lower than in St. Louis, Missouri, the city with the highest at 17.68 percent.
  • South Gate, California, has the lowest vacancy rate, 1.97 percent, which is 18 times lower than Miami Beach, Florida, the city with the highest at 35.42 percent.
  • Flint, Michigan, has the lowest home price as a share of income, 104.33 percent, which is 14.2 times lower than Santa Monica, California, the city with the highest at 1,477.21 percent.

Is now a good time to buy? What economic indicators should potential buyers be watching?

“Buying a home is one of the most important financial decisions many households will make in their lifetimes. Many households will likely own their homes for a long time, so I think there is little point in trying to time the market by a few months in the current environment. My advice is not to rush into any purchase decisions just because there is a risk that prices may rise further. The most important factor to consider is the long-term affordability of the purchase. Work out the required down payment and work out the monthly cost of the mortgage. Make an honest assessment of your budget and manage it with discipline. In this respect, a key indicator to watch is interest rates. Higher rates usually bring down the price of homes, but they also increase the cost of borrowing – again highlighting how important it is to make prudent financial decisions that are sustainable for your household’s budget,” said Eva Steiner  associate professor, Penn State.

“Now is always a good time to buy. General economic conditions do not control whether one should or should not buy. Each real estate transaction should stand on its own. A good deal is a good deal whether we are participating in an economically strong period, going through economic stagnation, or the victim of a monstrous inflationary cycle, like now,” said Edward D Re Jr. AIA – Facilities Manager; Adjunct Professor, Pratt Institute

What trends are impacting the housing market in 2022? Will it crash or boom?

“The homebuying and rental frenzy of the past two years probably had just about run its course anyway, but the Fed’s monetary tightening this year slammed the brakes on it. You will probably see home price growth flatten in some of the Northern tier markets like NY, Boston, DC, and Chicago, with prices possibly falling in the sunbelt markets that have shown price volatility in the past, like Phoenix, Dallas, Tampa, and Miami. But we are not seeing the shaky mortgage financing that we saw before the last housing crash, so the correction should not be anywhere near as severe,” said Frank Braconi, Ph.D., former chief economist for NYC Comptroller; principal of Big City Economics consulting; professor, New York University.

“Rising interest rates are a primary concern. Supply chain issues continue to linger and negatively impact the availability and cost of new housing. This places upward pricing pressure on the existing housing stock. One positive note is the growth in remote working has opened more markets for potential home buyers to consider, which should relieve some pricing pressure. My opinion is that the essential fundamentals are still good for owners of housing, with continued growth in values and returns. I do not see a crash, but current market conditions would likely moderate the effect of the ‘boom’,” said Nicholas E. Stolatis – Principal of EPN Real Estate Services, Inc.; Faculty, Fordham University.

How likely is it that the Federal Reserve will increase interest rates in the coming months? How will this impact the housing market?

“I think it is likely that the Federal Reserve will continue to raise interest rates, but possibly at a slower pace. That is because inflationary pressures have begun to ease, and the central bank needs to avoid tipping the economy into a prolonged recession,” Steiner said.

“Based on all reports, the Fed is positioned to continue raising interest rates for several more quarters. There is speculation that recent inflation figures may convince the Fed to moderate the size of its rate increases, but not necessarily the number of such increases. Until rates stabilize, I do not believe the housing market will be able to settle into a balanced condition,” Stolatis said.

To view the full report and your city’s rank, please visit:

Source: WalletHub