Las Vegas, Cities In Pacific Northwest And Florida Top Ten-X's List Of Winter's Hottest Single-Family Housing Markets

Seattle, Fort Lauderdale, Orlando, and Portland Continue to Dominate the Top Slots as Las Vegas Gains Momentum on the Strength of Thriving Local Economies & Soaring Population Growth

Mar 03, 2016, 09:00 ET from Ten-X

IRVINE and SILICON VALLEY, Calif., March 3, 2016 /PRNewswire/ -- Ten-X (formerly Auction.com), the nation's leading online real estate marketplace, today released its Top Single-Family Housing Markets Report for Winter, which ranks the nation's 50 largest housing markets according to current and forecasted housing fundamentals.

Among the 50 largest U.S. markets, the top five were Seattle, Fort Lauderdale, Orlando, Portland, and Las Vegas. These markets had the best combination of rising home prices, favorable affordability and strong housing demand, combined with strong economic and demographic conditions that point to future demand.

Of the five markets highlighted in Ten-X's Winter 2015 single-family market rankings issued on October 20, only Las Vegas is new to the top five, making a sizable leap from 20th place to 5th place. The top three—Seattle, Fort Lauderdale, and Orlando—remain unchanged while Portland inched ahead one spot from 5th place to 4th place. 

"The fact that Las Vegas – ground zero during the foreclosure crisis – has climbed back to become one of the five hottest markets in the country tells you just how far we've come in terms of a housing recovery," said Ten-X Chief Marketing Officer Rick Sharga. "Destination cities like Las Vegas, Fort Lauderdale, and Orlando are benefitting from low oil prices, which increase leisure and hospitality business, and in turn boosts employment and home prices. We expect the housing recovery to see some choppiness, but generally continue building on its current momentum."

Seattle and Portland continue to enjoy robust economic and demographic growth driven by the tech sector, with housing fundamentals in these markets now eclipsing pre-recession peaks. Fort Lauderdale and Orlando represent the strength seen throughout most Florida markets following their acute recessionary decline. Las Vegas signals progress in another market that had been decimated by the housing crisis. Florida and Las Vegas, markets that had previously been poster children for the housing bust, are now boosted by revitalized local economies and population growth driving market demand.

"The U.S. housing market recovery continues to be supported by underlying economic fundamentals, particularly the improved labor market," said Ten-X Chief Economist Peter Muoio. "Though new regulatory procedures induced some volatility in late 2015, home sales continued at a healthy pace, and while a tight inventory of homes constrained improvement in sales, it has contributed to accelerated gains in home prices."

Top Five Markets at a Glance

Market

Home Price Growth, Year over Year

Home Sales Growth, Year over Year

Seattle

12.3%

9.4%

Fort Lauderdale

8.9%

7.9%

Orlando

11.2%

8.9%

Portland

11,9%

11.2%

Las Vegas

8.3%

22.6%

Top Market Highlights

Seattle

Employment keeps hitting all-time highs thanks to the information sector posting year-over-year gains of 5 percent and metro payrolls, which rose 3 percent over the past year, now measuring more than 7.5 percent higher than their previous peak. The Seattle single-family market continues its strong performance, with sales growth 9.4 percent higher than a year ago. Home prices are skyrocketing as well, increasing 12.3 percent year-over-year to a new peak this quarter and outstripping the market's housing bubble heights. Demographics remain highly supportive of future growth, as population growth has been more than doubling the U.S. rate since 2011, which will buttress demand and put upward pressure on prices in the long run.

Fort Lauderdale

The local economy continues to strengthen and reach new heights, fueled by job growth in its outsized financial services sector pushing payrolls up nearly 4 percent year-over-year. The large professional/business sector is also rolling, growing in excess of 7.5 percent over the past year. Home prices were most recently up 8.9 percent from their year-ago level, though remain a notable 22 percent lower than their pre-bust peak. Home sales currently sit atop a cyclical peak, up 7.9 percent from a year ago. The ever-important leisure/hospitality sector has benefited growth even further with higher levels of domestic tourism amid the current economic upcycle. Though population growth has slowed, the metro's solid demographic performance continues to support economic expansion and housing demand throughout Broward County.

Orlando

Orlando's economy is a model of white-hot consistency buoyed by its leisure/hospitality industry, the metro's largest sector, with employment up 5.3 percent over the past year as overall employment also hits a record high, up 3.8 percent from a year ago. Extremely low oil prices, trending near $30/barrel, are translating to air travel savings for Disneyworld-bound tourists and aiding the sector's continued expansion. Home prices have risen 11.2 percent over the past year—one of the strongest gains in the nation—while home sales growth remains close behind at a respectable 8.9 percent. Orlando's population grew 2.2 percent in 2014, the third strongest increase among the top 50 U.S. markets, providing strong support for housing demand and boosting the single-family market.      

Portland

Scorching job growth in Portland's professional/business services sector has topped 7 percent year-over-year with payrolls at an all-time high more than 20 percent above their prior peak. Seasonally adjusted employment increased in 11 of 12 months in 2015 to a record peak nearly 4 percent higher than a year ago, contributing to an economy that is enjoying consistent expansion. Home prices have increased in each of the past 14 quarters and are up nearly 12 percent over the past year. Despite some choppiness, home sales have experienced nearly identical growth, currently standing 11.2 percent higher than a year ago. The population in Portland grew 1.5 percent in 2014, roughly double the national rate and a good sign for the market's outlook. Housing remains reasonably affordable in the metro, which should continue to support growth in prices and sales going forward.

Las Vegas

Though the Las Vegas economic recovery has cooled since 2014, it remains steadfastly in place. While the professional/business services sector has hit a roadblock, with payrolls having declined in four of the last five months, the year-round leisure/hospitality industry remains strong and mirrors the metro trend of a 2 percent increase in employment year-over-year. Existing home prices are up 8.3 percent over the past 12 months. Sales have also recovered, turning up sharply this quarter to their second-highest level ever, bringing them 22.6 percent above their year-ago level—the strongest gain among the top 50 U.S. housing markets. Las Vegas' population growth accelerated to 2 percent according to the most recent data, more than the U.S. pace after it slowed to match the U.S. growth during the depths of its downturn.   

Market Rankings and Methodology

Sales and pricing activity provide real-time insight into buyer demand and price appetite, particularly among real estate investors. Combining past and current trends with its economic and demographic growth forecasts, Ten-X has ranked the largest 50 metros for performance potential.

The rankings take into account pricing, sales, permit activity and economic growth. Population growth is also considered, but it should be noted that the company utilizes annually compiled Census data. Therefore, any softening in demographics over recent months is not reflected.

Market

Rank

Seattle

1

Fort Lauderdale

2

Orlando

3

Portland

4

Las Vegas

5

Palm Beach  County

6

Tampa

7

Columbus

8

Charlotte

9

Atlanta

10

Nashville

11

Oakland

12

Denver

13

DC

14

San Francisco

15

Salt Lake City

16

Raleigh

17

Miami

18

San Diego

19

San Antonio

20

Dallas

21

Austin

22

Jacksonville

23

Phoenix

24

Boston

25

Northern Virginia

26

Minneapolis

27

Riverside, CA

28

San Jose

29

Los Angeles

30

Cincinnati

31

Kansas City

32

Orange  County

33

Sacramento

34

Indianapolis

35

Fort Worth

36

Houston

37

Long Island

38

Baltimore

39

Detroit

40

Chicago

41

Milwaukee

42

Suburban Maryland

43

Memphis

44

St. Louis

45

Philadelphia

46

Pittsburgh

47

Northern New Jersey

48

Cleveland

49

Central New Jersey

50

About Ten-X

Ten-X (formerly Auction.com) is the nation's leading online real estate marketplace, having sold 200,000+ residential and commercial properties totaling more than $37 billion since 2007. Leveraging desktop and mobile technology, Ten-X allows people to safely and easily complete real estate transactions entirely online.

Ten-X empowers consumers, investors and real estate professionals with unprecedented levels of flexibility, control and simplicity—and the convenience of buying and selling properties whenever they want and from wherever they are. As real estate continues to move online, Ten-X is uniquely positioned to be at the forefront of this dramatic behavioral shift.

Ten-X is headquartered in Irvine and Silicon Valley, Calif., and has offices in key markets nationwide. Investors in the company include Google Capital and Stone Point Capital. For more information visit Ten-X.com.

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