According to Pro Teck Valuation Services latest Home Value Forecast, 29 U.S. cities are tied for the title of “hottest” real estate market. Ranging from Charlotte to Grand Rapids to San Antonio to Sacramento, cities with different demographics, geography, economic, and political atmospheres all are firing on all cylinders. Despite their differences, Pro Teck’s analysts report one distinct similarity that explains the success of the disparate markets: lack of inventory. All 29 markets have less than four months’ worth of homes available for purchase, meaning it’s a seller’s market. In addition to a lack of new homes coming on the market, investors continue to snap up homes with the intention of renting them out, taking more homes out of circulation for buyers and driving up prices further. The Home Value Forecast further notes that those conditions aren’t likely to change anytime soon: each and every one of those “hottest” markets has seen double-digit decreases in the number of active listings.
On the other hand, several markets are in the midst of a major swing for the buyer. For instance, in Huntsville, AL, active listings have increased 74%, and in McAllen-Edinburg-Mission, TX there is now 11 months’ worth of homes on the market. In Midland, TX, researchers point to idling oil rigs for the sharp increase in homes on the market. There are currently 169% more homes on the market, and sales have fallen by 12%.
As for overall health (looking at sales, listings, trends, prices, days on market, foreclosures, etc.), the top 10 metros are as follows:
• Bellingham, WA
• Boise City, ID
• Modesto, CA
• Portland-Vancouver, OR-WA
• Sacramento-Roseville-Arden-Arcade, CA
• San Diego-Carlsbad, CA
• San Jose-Sunnyvale-Santa Clara, CA
• Seattle-Bellevue, WA
• Stockton-Lodi, CA
• Vallejo-Fairfield, CA