Is The Real Estate Market Improving
Is the real estate market improving? The answer to this question is important when buying and selling real estate. According to the National Association of Home Builders/First American Improving Markets Index (IMI) for June 2012, 80 U.S. metropolitan areas are showing housing markets with measurable and sustained improvement. While is the latest figures are down from those in May, when 100 metropolitan markets were included on the list, 28 new cities are included on June’s list. Plus, there is at least one city represented from 31 different states, including the District of Columbia.
Here’s a look at some signs that the real estate market is improving along with a spotlight on some of the cities to make June’s IMI Index.
Signs that the Real Estate Market is Improving
- Job market recovers: When the unemployment rate drops and closed businesses reopen, the housing market correspondingly recovers.
- “For sale” signs go down: If too many houses are for sale, and there aren’t enough buyers, then prices go down. It’s a simple example of supply and demand.
- Foreclosures and short sales are less common: In a healthy market, people don’t sell their homes because they can’t afford the mortgage; they sell because they are upgrading to a larger home.
- Interest rates drop: Lower interest rates allow new home buyers to afford loans, which stimulates the housing market.
Cities on the Upswing
Eighty U.S. cities have shown these and other signs that the real estate market is improving for six consecutive months. Some of the most notable are:
- Phoenix
- Grand Junction, Colo.*
- Washington, D.C.
- Tampa, Fla.
- Iowa City, Iowa
- Detroit
- Jefferson City, Mo.
- Jackson, Miss.
- Fargo, N.D.*
- Knoxville, Tenn.*
- Dallas*
*Cities added in the most recent report
This is just a glance at some of the top cities where the real estate market is improving. Seethe National Association of Home Builders for the complete list of U.S. metropolitan areas that made the list. Then, visit First Preston HT for real estate asset management, services, or other real estate information.