NASHVILLE, Tenn. (WKRN) — If you’re considering investing in real estate, you need to have a handle on the housing market, which has been more balanced this year, according to WalletHub, with mortgage rates staying relatively stable compared to last year and home values up 0.3% on average.
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If you’re looking for long-term growth, equity, and profit with your housing purchase, WalletHub recommends looking beyond tangible factors like square footage and style. While those factors drive up property values, they hold less significance from an investor’s standpoint than historical market trends and the economic health of residents.
“Current home prices are extremely important, but there’s much more that you need to look at when determining the health of a city’s real estate market,” WalletHub analyst Chip Lupo said. “Factors like the cost of living, the potential for the value of homes to increase, the availability of recently-built homes and the quality of the city’s job market are all important to consider in conjunction with asking prices and interest rates. The best cities may not always be the cheapest, but they offer excellent housing options and long-term stability.”
In order to determine the best real estate markets in the U.S., WalletHub said it compared 300 cities across 17 “key indicators of housing-market attractiveness and economic strength.” The data set ranges from median home price appreciation to job growth.
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The top 10 markets are listed below, including one in Tennessee:
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McKinney, Texas
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Cary, North Carolina
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Irvine, California
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Durham, North Carolina
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Richardson, Texas
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Frisco, Texas
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Gilbert, Arizona
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Nashville, Tennessee
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Denton, Texas
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Allen, Texas
When looking at the health of Nashville’s real estate market, WalletHub said Nashville was eighth for median home price appreciation, 25th for foreclosure rate, 68th for percentage of delinquent mortgage holders, 148th for maintenance costs as percentage of income, and 155th for home price as percentage of income.
In addition to Nashville, three other cities from the Volunteer State were featured on WalletHub’s list of the best real estate markets, with Murfreesboro at No. 15, Knoxville at No. 22, and Memphis at No. 259 overall. However, when the markets were split up by city size and then ranked, Nashville was second and Memphis was 58th among the 68 “large” cities while Murfreesboro was eighth and Knoxville was 12th among the 99 “midsize” cities.