Home Values are up in Some Housing Markets
Values in housing markets are up nationally from the second quarter of 2011 to the same period of 2012, according to a report from the National Association of Realtors. Overall, home prices are on the rise throughout most of the country and even in some places that have been hit the hardest by the last four years. Most real estate experts believe that the housing market has finally bottomed out and we are on a shaky, but upward swing. They don’t go as far as, “We’re in recovery!” but, they are looking hopeful; barring any big drop in the economy. Surely, the economy cannot drop anymore without total collapse. So, let’s be hopeful that we only go up from here.
The Hottest Markets in the Country
The number one hottest housing markets in America today is Detroit; MI. Home values have risen up to 29.3 percent from last year. This brings the median home price up to $60,200. Detroit was extremely hard hit with one of the highest unemployment rates in the country, which has slowly dropped to below the national average. Work equals the ability to buy homes, especially affordable homes in Detroit. Also, venture capitalists have been renewing the city’s downtown area, developing it into a high tech mini mecca, bringing in more and more business. Forbes even dubbed the city, ”the Comeback Kid?” The question mark was theirs.
The number two hottest housing markets goes to the Phoenix-Mesa-Scottsdale metro area of AZ. Their home values have risen up 29% over the last year and their median home price is up to $148,400. The Phoenix area has been hard hit with foreclosures over the last several years, but the flood gates are closing and fewer and fewer distressed homes are on the market; driving prices up. Phoenix has buyers, now they just need more homes for sale.
Number three on the hottest markets list is Boise-Nampa, ID. Home prices have risen 21.7% over the last year, making the median home price $138,200. The Boise metro area is nestled in a valley surrounded by snow-capped mountains on one side and farmland on the other. The Boise area was on the high end of the foreclosure rate and the market was dreadful until this past spring when everything started to turn. Buyers are in bidding wars with investors which raise home prices. The Boise market is just crossing its fingers that this jump continues to climb.
The number four hottest housing markets is Florence, SC where home prices have jumped 20.5% and the median home price is $136,100. Florence was hit hard by job loss and unemployment, until November 2011 when it raised, according to Florence Trends data, by 42694%. The average income shot up to $35,388. Once again, jobs equals demand for housing, which has given Florence a great boost.
And the final hottest housing markets goes to Akron, OH where their home values shot up 16.5% bringing the median home price up to $116,700. Akron has dealt with high unemployment and high foreclosures rates; but things are starting to turn around with new businesses and fewer foreclosures. The feeding frenzy over purchasing up all the foreclosures has driven home values higher and brought inventory lower. This trend of shrinking inventory throughout the country has worked to drive up home prices; but eventually the lenders will have to release the heavy inventory of stored up foreclosures, which could send the market either way. Let’s hope it will continue feed the frenzy of home buyers and investors to help bring us further out of the hole.