WALTHAM, Mass., Sept. 27, 2016 /PRNewswire/ -- This month's Pro Teck Valuation Services Home Value Forecast shows how a hot summer of home buying has helped improve market conditions across the country.
In July, nearly 70% of the CBSA tracked were listed as "normal" or above. A month later in August, that number rose to over 76%. Adding to the positive trends is the fact that only 1.4% of CBSAs tracked came in at "weak" or "distressed" in August.
"A number of factors go into this improvement," said Tom O'Grady, CEO of Pro Teck Valuation Services. "Low interest rates, the loosening of credit, improved employment numbers and the positive effects of the traditional summer home buying period all have a role."
Comparing these numbers to the same time period two years ago shows how much progress there's been. In August 2014, only 45% of CBSAs were listed as normal or above, with 8.5% of the CBSAs in the "weak" or "distressed" category.
Since then, much of the REO surplus has been worked back into the market, leaving pockets of slower recoveries driven by local factors.
Click here to read the entire forecast, including graphs that further highlight each of market trends discussed in this release.
CBSA Winners and Losers
Each month, Home Value Forecast uses a number of leading real estate market-based indicators to rank the single-family home markets in the top 200 CBSAs and highlight the strongest and weakest metros.
Top 10 CBSAs this month include:
- Boise City, ID
- Bremerton-Silverdale, WA
- Colorado Springs, CO
- Durham-Chapel Hill, NC
- Merced, CA
- Mount Vernon, Anacortes, WA
- Oak Harbor WA
- Visalia-Porterville, CA
- Washington-Arlington-Alexandria, DC-VA-MD-WV
- Charleston-North Charleston, SC
The Boise, ID CBSA tops our list this month, as a 49% drop in active listing has made for a very limited supply of available homes. Boise home prices are at an all-time high, with projected steady growth for the next five years.
Bottom 10 CBSAs this month include:
- Huntington-Ashland, WV-KY-OH
- Huntsville, AL
- Miami-Miami Beach-Kendall, FL
- Chicago-Naperville-Arlington Heights, IL
- McAllen-Edinburg-Mission, TX
- Billings, MT
- Midland, TX
- Jacksonville, NC
- Atlantic City-Hammonton, NJ
- Saginaw, MI
Miami being in the bottom ten this month may come as a surprise to some. The still large REO inventory is slowing the recovery. REO as a percentage of sales is at 13%, still well above the 3-5% norm of a healthy market.
"While there has been drastic improvement, a major decrease in investor-driven purchases and foreign buyers has slowed Miami's recovery," said O'Grady. "Some have also sited Zika concerns as a reason for the slowdown — we will continue to monitor the situation in the months ahead."
About Home Value Forecast
Home Value Forecast (HVF) is brought to you by Pro Teck Valuation Services. HVF provides insight into the current and future state of the U.S. housing market, and delivers 14 market snapshot graphs from the top 30 CBSAs.
HVF is built using numerous housing and economic data sources. The top 750 CBSAs as well as data down to the ZIP code level for approximately 18,000 ZIPs are available with a corporate subscription to the service. To learn more about Home Value Forecast and Pro Teck's full suite of residential real estate valuation products, visit www.proteckservices.com. You can also find Pro Teck on Twitter at @ProTeckServices.
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SOURCE Pro Teck Valuation Services