Housing prices have taken a beating over the last few years all around the country. However, a few major cities have finally hit bottom and are on their way back.
The question that some are asking now is whether the rebound is temporary, or a clear sign that those markets have come back from their trough.
Here are ten major cities that are clearly on the mend:
|City / Market||Rebound off
|Y/Y Change (Aug ’09)||Monthly Change (Aug ’09)|
|Minneapolis, Minnesota||12.94%||April||– 14%||3.2%|
|San Francisco, California||12.5%||March||– 13%||2.8%|
|Cleveland, Ohio||10.9%||March||– 3%||0.5%|
|Denver, Colorado||8.19%||February||– 2%||1.0%|
|Dallas, Texas||8.10%||February||– 1%||0.2%|
|Washington, D. C.||7.79%||March||– 8%||1.4%|
|Boston, Massachusetts||6.94%||March||– 4%||1.0%|
|Chicago, Illinois||6.75%||April||– 13%||2.7%|
|San Diego, California||6.17%||April||– 9%||1.6%|
A large percentage of the sales activity today is coming from first-time home buyers and investors. In some markets this activity makes up over 75% of the total sales volume.
Remember that job growth is the primary driver of housing demand. And job growth translates into more people with incomes who can buy or rent homes. These markets have not been affected as much by the high unemployment we see in other parts of the country.
If you are a real estate investor sitting on the sidelines waiting for a bottom then this may be the nudge you need to get up and start investing. There are a large number of prudent real estate investing opportunities available today with historically low interest rates to boot!