As the snow begins to thaw, the real estate market starts to heat up. So where can overseas property investors find the hottest property markets in the US?
February has already seen the beginnings of the traditional spring revival of the real estate market, with property reaching a median price of $275,000, equal to the peak last summer.
Listing prices have increased by 10 per cent year-on-year compared to February 2017 according to the latest figures from real estate website Realtor, indicating that the spring and summer peak will rise even higher.
Javier Vivas, director of economic research at realtor, commented: ‘Rapid mortgage rate jumps, and confirmation of a brighter economic outlook have inflated the pool of home buyers early in the year, putting an extra squeeze on the mid- and entry-level market.’
A major shortage of properties for sale is driving the hottest property markets, with housing inventory down 8 per cent year-on-year from the previous February.
Vivas said: ‘A second wind in demand has extinguished weak bursts of new construction and new listings, putting a larger than expected dent on inventory. While fewer markets are seeing inventory get worse this month, many others have seen the listings shortage intensify even further.’
Properties are moving off the market 8 per cent faster than this time last year, spending a median 83 days on the market.
Using the key indicators of days on market and listing views per market, Realtor have come up with their monthly list of the hottest real estate markets in the US.
While there are many familiar faces in the February top 20, with San Francisco again holding on to top spot, there have also been some big movers.
Spokane, about four hours inland from Seattle on the Idaho border, has been attracting buyers escaping high prices in Seattle to move up 13 places on the hottest property area list.
Overseas property investors may want to examine the list to pick out the up and coming US property areas.
February Hot Property List (January Rank in Brackets)
Rank Hottest Markets
1 (1) San Francisco, CA
2 (5) Midland, TX
3 (3) Vallejo, CA
4 (2) San Jose, CA
5 (8) Sacramento, CA
6 (9) Denver, CO
7 (7) Santa Rosa, CA
8 (4) Colorado Springs, CO
9 (6) San Diego, CA
10 (10) Stockton, CA
11 (18) Santa Cruz, CA
12 (12) Dallas, TX
13 (16) Chico, CA
14 (17) Oxnard, CA
15 (11) Modesto, CA
16 (15) Columbus, OH
17 (13) Fresno, CA
18 (31) Spokane, WA
19 (28) Fort Wayne, IN
20 (14) Los Angeles, CA