“While national and regional rates showed more of the same in September, an interesting dichotomy is unfolding beneath the surface,” says Dr. Alex Villacorta, vice president of research and analytics at Clear Capital. “Strong performances in San Francisco and Detroit remind us that in a dynamic market, the only constant is change. For about a year and a half now, we’ve been focused on First-In, First-Out recoveries characterized by hard hit markets attracting investor interest, like Miami, Phoenix and Las Vegas. Now as the recovery matures, we see homebuyers re-engaging in markets that haven’t fit the typical investor profile.
“As demand calibrates to local economic environments, markets will start to find their natural equilibriums with moderating gains ahead. This should invite new markets, such as San Francisco and Detroit to share the spotlight as their recoveries continue to evolve,” he says.
For more information, visit www.realestateeconomywatch.com.