Money

10 hottest affordable neighborhoods in America for 2019

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Owning a home is often cited as one of the best ways to build wealth, and real estate site Redfin recently revealed America's hottest affordable neighborhoods to buy in 2019 — they are on the outskirts of major metros, like Philadelphia and Baltimore.

"A lot of people are moving away from the city center into places that feel more like suburbs," said Redfin agent Rebecca Hall. "They're moving to areas that ... have more of a neighborhood feel.... You can get larger single-family homes ... and they're less expensive. Some of these pockets are also known for desirable charter schools."

Indeed, in February, CNBC Make It reported that millennials have become the largest group of home buyers, and almost half live in the suburbs, according to real estate site Zillow. The preference for suburbs is partially due to soaring prices on homes in urban cities and a preference for shared amenities such as gyms and pools.

The following are Redfin's Hottest Affordable Neighborhoods for 2019.

1. McKinley Park, Chicago

Median sale price: $270,000
Median sale price for metro area: $230,000
Percent of homes that sold above list price: 35.1 percent

2. East Mount Airy, Philadelphia

Median sale price: $200,000
Median sale price for metro area: $199,000
Percent of homes that sold above list price: 28.1 percent

3. Parkville, Baltimore

Median sale price: $204,900
Median sale price for metro area: $270,000
Average sale-to-list price ratio: 98.2 percent
Percent of homes that sold above list price: 24 percent

4. Hamilton, Baltimore

Median sale price: $159,500
Median sale price for metro area: $270,000
Percent of homes that sold above list price: 31.6 percent

5. Fircrest, Vancouver, Washington (Portland, Oregon metro area)

Median sale price: $282,500
Median sale price for metro area: $385,000
Percent of homes that sold above list price: 20 percent

6. Bustleton, Philadelphia

Median sale price: $248,250
Median sale price for metro area: $199,000
Percent of homes that sold above list price: 29.4 percent

7. Linthicum, Baltimore

Median sale price: $271,000
Median sale price for metro area: $270,000
Percent of homes that sold above list price: 37 percent

8. Lowell, Massachusetts (Boston metro)

Median sale price: $249,250
Median sale price for metro area: $471,100
Percent of homes that sold above list price: 38.9 percent

9. Fox Chase, Philadelphia

Median sale price: $219,000
Median sale price for metro area: $199,000
Percent of homes that sold above list price: 30.2 percent

10. Beacon Hill, San Antonio, Texas

Median sale price: $213,264
Median sale price for metro area: $220,000
Percent of homes that sold above list price: 46.2 percent

Redfin used a predictive algorithm that used year-over-year growth in listing pageviews and "favorited" listings on the site from June 2017 through November 2017 and June 2018 through November 2018. It also used real estate agent insights. Redfin implemented a sale price cap of $294,000 (which is the median home price across all of Redfin's markets). All listed figures are from November 2018.

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Barbara Corcoran: This is when and how to buy your first home


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