Hottest Real Estate Markets Revealed
You don’t have to be a real estate professional to find a great deal on a home; you just need to know your market.
Even with a declining economy and a national housing crisis, there are some housing markets that are actually appreciating.
Housing Predictor has released its annual Hottest 10 Buyers Markets report based on studies conducted on all 250 local real estate markets Housing Predictor tracks on an ongoing basis. This year's Hottest are: Honolulu (HI), Salem (OR), Maui (HI), Bismarck (ND), Sun Valley (ID), Biloxi (MS), Austin (TX), Grand Junction (CO), Spokane (WA) San Antonio (TX) - and Crystal Beach (TX) would be on the list if tracked by HPI.
Notice how well the Texas Markets are doing in both the Metro areas and on the coast:
The Texas coast market is doing well and has a super performing market on the north-east tip closest to the billions being invested in energy plants.
According to the Galveston Board of Realtors, the Bolivar Peninsula area home sales increased by 34%.
Crystal Beach had 41% Increase!
the highest in the entire nation, fueled partly by an $8 billion expansion of Royal Dutch Shell’s Motiva refinery in Port Arthur Texas.
Crystal Beach Galveston Texas
Bolivar Peninsula Galveston County Sales 2006 and 2007
from Galveston Board of Realtors
|Even though the Crystal Beach area was the only real estate market on the Texas coast which experienced significant sales growth and a median price increase in 2007,
all Texas coast markets showed median price increases!
Click here to learn more.
In fact, according to First American CoreLogic, a leader in residential mortgage data and analytics for the mortgage industry and Wall Street, announced that Thirty-One States, including Texas, Showed Positive Growth in Past Year.
“The latest LoanPerformance HPI (home price index) release reveals that, although real estate in key markets like California, Florida, Nevada and Arizona continue to exhibit home price depreciation, 31 states show HPI gains over the past 12 months,” said Damien Weldon, vice president, collateral and prepayment analytics for First American CoreLogic.
||The LoanPerformance HPI provides a|
comprehensive set of monthly home price indices
and median sales prices covering 7,462 ZIP codes,
956 Core Based Statistical Areas (CBSA) and 662
counties located in all 50 states and the District of
Columbia. The indices, which are the most
comprehensive available in the industry, are
reported to clients five weeks after each full month
Market Fundamentals Defined:A Balanced Market
In the ideal local real estate market, there should be a balance between demand for homes and the supply of homes available for sale. Although there is no exact benchmark to measure balance, there are ways of knowing if a local real estate market is close to being a balanced one.
A local market has an adequate supply of homes for sale if houses on the market sell within six months - even higher in coastal areas where 12 months is considered a balanced market.A Seller’s Market
When the market demand for homes in a particular area is high and there is a shortage of homes available for sale, the balance of power in the market shifts toward the seller. With excess demand in the market for homes, sellers can wait for offers on their property to reach (or exceed) their minimum selling price.
We were in a seller’s market in early 2005 at the height of the real estate boom in most of our nation’s housing markets. Housing was “hot,” particularly in ocean resort towns. This prolonged excess demand for properties exerted substantial upward pressure on pricesA Buyer’s Market
When demand for new and existing homes is weak and there is a glut of properties available on the market, the upper hand in negotiations switches to buyers.
Buyers now have a much wider choice of properties from which to choose and are often able to negotiate a price that is lower than the listed price.
Sellers do all they can to sell their homes—even offering to pay some of the upfront costs of the buyers, reducing the listing price, and offering other incentives to attract buyers.