Will smaller cities pick up steam?

[Amie D.]

More and more reports come out of the price increases, low supply and so on in the real estate market of large cities across the nation.

In your experience (or opinion), do the smaller cities outside of the larger metro areas tend to follow suit in time? Or does it just depend?

In the few I've looked at, price increases have started but not to the extent of the larger metros. Or could that be just because smaller markets don't tend to fluctuate as much to begin with?

[Jon Klaus]

If you are buying in small towns on the edge of the city, pick cities that are growing and study the growth patterns. It often follows the highways. Pick an edge town that is next in line for fast growth ad development. Simply buy in the way of growth. Austin? Look at San Marcos or Cedar Park, for example.

I'm seeing some firming up outside of Dallas/Ft Worth, but not like the cities themselves or close in suburbs, yet. I'd want to be close enough in, so that the commute to DFW is reasonable. 45 minutes, max.