The Next 3 Hot Real Estate Sectors

Although some real estate sectors might “decelerate”—with price growth at slower rates than before—there are three areas of the market that have a strong potential to see home-price acceleration in double-digits over the next two years, according to Lawrence Yun, senior economist at the NATIONAL ASSOCIATION OF REALTORS®.

Yun made the prediction to members of the Research Committee on Thursday at the 2005 REALTORS® Midyear Legislative Meetings & Trade Expo, being held May 9-14 in Washington, D.C.

These next hot markets to look out for are:

• Heavy in-migration regions — Places where a high number of residents move in from other parts of the country, including Nevada and Florida.

• Future retirement destinations that are still currently affordable — Places where homebuyers plan to buy now and live once they retire, including Charleston and Myrtle Beach, S.C.; Virginia Beach, Va.; the panhandle of Florida; Alabama; and the North Carolina coast.

• Tech-sector heavy markets — Markets where the technology industry is making a comeback, including Seattle; Denver; Austin, Texas; and Raleigh-Durham-Chapel Hill, N.C.

“So, as the rest of the country takes somewhat of a breather, these markets will see acceleration of prices into double-digit levels,” Yun said.