Using data from the National Association of Realtors (NAR) through the first quarter of 2012, InvestorPlace.com editor Jeff Reeves has put statistics about housing growth into perspective for homeowners and interested investors with a recent article that breaks down the most affordable and most expensive metropolitan housing markets. The list also includes the markets that saw the biggest and smallest price gains, complete with year-over-year price changes and median price statistics for each market.
“Growth is important,” Reeves said, “but the context about whether home prices are rising from $50,000 or $350,000 is certainly worth noting. Equally important is the stability of housing markets as measured by the median listing price. Since all real estate decisions are local, it’s important to understand just what each local market will bear.”
According to NAR data, the Detroit-Warren-Livonia, Mich., area is the cheapest housing market in America. The median home price is a mere $53,100, down 2.8% from a year ago. With a median home price of $602,300, Honolulu is the most expensive housing market. And it shows little risk of cooling off, as prices were up 6.5% compared with the same time in 2011.
“When it comes to a housing rebound, obviously the markets at the top aren’t likely to see the biggest gains even if they are the most stable,” Reeves explained. “That’s why the NAR’s list of largest median price gains is concentrated in the hard-hit state of Florida.”
Cape Coral-Fort Myers, Fla., is on the top of the list with a 28.1% gain from Q1 2011 to Q2 2012. This is in line with year-over-year housing data from Clear Capital that puts the Miami metro area near the top of the list of fastest-growing housing markets for June (by listing price). The median price for the region was $117,600.
The biggest housing drops during the financial crisis and mortgage meltdown are well documented. Regions like Las Vegas and Florida that built up in a frenzy saw their home prices collapse just as fast in 2009 and 2010.
“But now that the dust has mostly settled, if you explore the metro areas losing ground the fastest, you’ll see a strange list of cities stuck in very different locations,” notes Reeves. “For example, Kingston, N.Y., has shed 22% in the last year. It’s not one of those Long Island enclaves though. Kingston is about halfway between Albany and New York City. Maybe the pain in state government coupled with the pain in New York’s financial sector has resulted in less need for an ultra-long commute.”
See the complete breakdown of U.S. housing markets at: https://investorplace.com/2012/07/5-most-affordable-5-most-expensive-housing-markets-in-the-u-s/2/.
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