All Markets Not Equal… Real Estate is Always Local…

The Real Story…

News and commentary about the real estate market and related topics.

Dave Parrish, ABR®, CRSA, CSP, GRI, ePRO®,REALTOR ®, RE/MAX

The opinions expressed here are my own and don’t necessarily represent those of RE/MAX International.

All Markets Not Equal… Real Estate is Always Local…

Seems that we all get our news from one of the major national news syndicates… Who have turned news into entertainment and seem to be focused on reporting the extremes that make headlines… that garner attention for larger readership/viewership and thus ad revenue. The real story is that all markets are not the same… not all markets are to remain down for the coming year.

Best Housing Markets Forecast in 2011

Best Markets for 2011

Rank

City

Forecast

1.

Portland, ME

3.6%

2.

Kansas City, KS

3.5%

3.

Tri-Cities, WA

3.4%

4.

Omaha, NE

3.3%

5.

Fargo, ND

3.3%

6.

New Orleans, LA

3.2%

7.

Iowa City, IA

3.2%

8.

Columbia, MD

3.1%

9.

Bellevue, NE

3.1%

10.

Bismarck, ND

3.1%

11.

Bethesda, MD

3.0%

12.

Silver Spring, MD

3.0%

13.

Lewiston, ME

3.0%

14.

Metairie, LA

2.9%

15.

Austin, TX

2.8%

16.

El Paso, TX

2.8%

17.

Overland Park, KS

2.8%

18.

Rapid City, SD

2.7%

19.

Boulder, CO

2.7%

20.

Sioux City, SD

2.6%

21.

Topeka, KS

2.6%

22.

Cedar Rapids, IA

2.6%

23.

Des Moines, IA

2.6%

24.

Davenport, IA

2.5%

25.

Wichita, KS

2.3%

The best housing markets forecast for 2011 encompass a large number of markets from the Mid-West and upper North-Eastern U.S. As the housing recovery moves forward in earnest in many areas of the nation, the numbers below aren’t in double-digits. But the appreciation or housing values that these markets are forecast to experience in the next year is at healthy levels, and may have a chance of retaining its upside for an extended period of time as the housing recovery develops.

For a time government stimulus money combined with lower home prices and historically low mortgage rates to drive home sales and prices in some areas of the country higher, but the so-called second leg in the housing market downturn is underway in many regions of the U.S.

Led by fourteen states, the worst 25 forecast housing markets are projected to decrease in average values in 2011 as the nation grows more accustom to a new sort of economy with less bank lending, more restrictive credit requirements, higher unemployment and social change. However, the rapid pace of deflation has eased from both 2010 and 2009.

The improving forecast demonstrates that housing markets are moving towards stabilizing, but still have a long way to go before reaching a balance. Record setting bank assisted short sales, foreclosures and an over-supply of inventory are hurting the under-lying economy, and pressuring home prices.

Worst Markets for 2011

Rank

City

Forecast

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