BluefoxToday blog : Real estate market perking up in troubled areas

Real estate market perking up in troubled areas

Anyone can live with these types of headlines. The other kind - like those about mortgage approvals being hard to get, price declines, foreclosures - have been dominant for too long. Yes, the positive ones give consumers a dose of optimism that the housing market isn't dead after all. That it has the capacity to work thorough its imbalances and eventually start on the road to recovery.  

Let's throw in some interesting stats. First American CoreLogic put together a bunch of numbers on home sales at ZIP codes in metropolitan areas with at least 10,000 households. Each city only got one ZIP included in the final ranking.

The best performer in this study was Fairfield, CA, where sales climbed 226% in the fourth quarter of 2008 compared with the same time period the year before. That's impressive. In fact, California dominated the top ten of the list with eight spots. Moreover, Arizona, California, Florida and Nevada, the most-ravaged states in this real estate downturn, easily ruled the entire field among the first 25 slots. Las Vegas, NV, came in 15th for ZIP 89131 where sales grew 27% for the fourth quarter.

As expected, the number one catalyst for this encouraging sales increase is the steep drop in prices. The states that led the way to the bubble's peak are now seeing their prices plummet the most, descending toward a plateau where people feel comfortable to operate again. That's how they are showing the most gains.

Low prices have drawn cash-heavy investors and eager first-time buyers, energized by today's affordable mortgage rates, to pick and choose from listings consisting mostly of bank REOs. The main thing is that the still high inventory is being burned up, that the demand side is building at least some momentum. It is crucial to a lasting turnaround.  

 

 

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Provided by: 

Esko Kiuru
Mortgage, real estate and apartment industry analyst 

www.BluefoxToday.com - syndicated mortgage, housing and property management blog

eskokiuru@gmail.com
My cell: 702-499-1006

Comment balloon 4 commentsEsko Kiuru • March 07 2009 10:26PM

Comments

Esko, yet all that I see being reported is how prices are still going down everywhere, and that tax payers need to bailout those who made bad personal and business finanical decisions.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) over 9 years ago

I hear that there are lots more foreclosures in Sacramento, CA even with all the low end sales.  It seems we have a ways to go.

Posted by Robert Machado, CPM MPM - Property Manager and Property Management (HomePointe Property Management, CRMC) over 9 years ago

George,

Weak prices are pushing these sales numbers up.

Posted by Esko Kiuru over 9 years ago

Robert,

Hopefully things turn around there soon for good.

Posted by Esko Kiuru over 9 years ago

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