Home prices in the United States are skyrocketing as mortgage rates remain elevated, but hopeful buyers may still find luck in some places, according to a real estate investor.
As of May 2024, the median sale price in the US is $438,601---marking a 4.9% year-over-year increase, per Redfin. The contract rate for a 30-year mortgage settled at 6.86% in the week ending June 27, while the rate for the 15-year mortgage hit 6.16% in the same period, Freddie Mac reported.
Despite increasing home prices, Barbara Corcoran---a real estate investment expert and GoBankingRates' "Money's Most Influential Women," said there are some areas she recommends investing in before home prices soar.
"I'm investing heavily in places like Pittsburgh, [Pennsylvania], Columbus, [Ohio] and Indianapolis," she told the outlet. "They have a young, educated population with lots of job growth and big companies in the area."
Where Corcoran Suggests Investing
Pittsburg, PA
The median sale price of homes in Pittsburg as of May is $239,496, up 6.7% year over year and also an increase from $226,333 in April 2024, according to Zillow. The city is also home to a booming steel industry, serving as a major hub for businesses in the sectors of advanced manufacturing, climate tech, and logistics.
Columbus, OH
As of the end of May, the median home price in Columbia is $247,174. That is up from 6.7% year over year. Homes in the city are in high demand, with listings often finding buyers in about four days.
Indianapolis, IN
The median sale price of homes in Indianapolis is $231,197, a 3.0% increase from last year. Listings in the city go to pending in seven days. Additionally, the city boasts a diverse economy and sports tourism.
Corcoran's Other Real Estate Advice
In addition to Corcoran's advice on cities to invest in, she also recommended investing in areas where school districts are poor.
"Go anywhere that has a poor school district where prices are really low," she said, noting that the advice is only applicable to buyers who are not looking to raise a family.
Furthermore, Corcoran advised in investing "anywwhere in the South" but said buyers should avoid Florida.
