By Steve Cook
Many markets in California, Arizona and Nevada—plus Detroit—that were the center of the housing crisis now appear to be well on the road to a robust recovery. More than 20 percent of the markets covered by realtor.com reported exceptionally large year over year list price gains of 12 percent or more and exceptionally large inventory shortages. As both prices and inventories become more balanced, affordability and availability will improve, creating better market conditions for both sellers and buyers, realtor.com said.
The recovery has yet to make an impact on markets where prices are the same or lower than they were last year at this time. Representing 20 percent of realtor.com®’s markets, these are located in the Midwest, South and Northeast, including Cleveland, Trenton, Hartford, Cincinnati and Buffalo. The impact of a weak economy continues to takes in toll in many of these markets but most have put in place the foundation for future growth. Both inventories and age of inventories are down compared to a year ago.
The recovery is having an extraordinary impact on the heartland. A number of major markets that didn’t suffer the brunt of the housing crisis nor face difficult local economic conditions had in an amazing buying season. Chicago, Boise, Portland OR, Minneapolis-St. Paul, Ann Arbor, Washington, DC, Nashville, Houston, Denver and Corpus Christie have all achieved price appreciation of 12 percent or higher over last year.
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