We don’t recommend you try to time the housing market but, if you’re in the market for a new home, it helps to pay attention to its cyclical nature. When times are hard, prices drop and the market becomes more attractive. When more people get in, prices naturally rise. While there are still deals to be had, this map shows that some of the regions that were hit hardest by the housing crisis in 2007 and 2008 have begun to bounce back in early 2009 with increased sales numbers. With sale prices of homes plummeting as much as 50% in some regions, more people have been jumping into the market with hopes of getting a great deal, especially with 30 year fixed rates falling below 5% for the first time in recent memory. The metropolitan areas that are highlighted are those with the highest percentage of change in median sales prices, for better or worse. The highest percentage increases in home sales are in areas where prices have dropped the most over the past year, which is an encouraging sign as bargain hunters see new opportunities. Further, the decrease in prices and attractive housing credits have finally made it possible for many first-time homebuyers to afford a home in the once red-hot areas like Orange County, Phoenix, and Las Vegas. While there are only six states that have experienced increases in sales volume in the past year, most of those positive changes have been drastic. Arizona has seen a 50% jump, California over 80% and Nevada an impressive 117% increase from 2008. Depending on where you live, the housing market may be in either a boom or bust cycle. Let us know in the comments how real estate is looking in your hometown, whether it is on the map or not.
23 Comments so far
leave a commentThere are some places that are just beginning to go down. Like California and Detroit. The forces that have caused prices to fall over the last year (high prices for Cali, recession, and jobs) are just beginning to have their effect.
I don’t think Cumberland Maryland is a good representative of homes for sale in Maryland. It’s a fairly remote portion of Maryland, and when you get towards the middle of Maryland in the Frederick or Carroll county areas it’s a lot more expensive. I couldn’t find houses below $150k, and the average price is closer to $250k-$400k.
I also imagine prices are even more insane in NY and NJ for the mid-atlantic area.
I’m sorry to say this map is confusing. While arrow highlights are about the changes in home prices per city, but the color coding is about the increase in sales volume per state. Considering the blog write up talk about home prices, that took a while to figure out. With the arrows only showing some select cities changes in pricing, it is difficult to correlate anything on the state level.
This is pretty accurate for our town of Cayucos, Ca in 93430. Last year the houses were 2 million now they are only 1 million. What a deal!
Wow, no way dude thats insane!
RT
http://www.privacy-tools.echoz.com
Great time for buyers who are cautious and don’t buy anything too big or out of their price range.
I live in Gilbert, and I have definitely experience the housing “boom” when it is supposedly a “Buyer market”. I am a first-time home buyer and I have been getting beat out constantly by other first-time home buyers, but primarily investors. Which sucks because they’re taking homes from guys like me just trying to buy my first house. I’ve put in over 7 offers and all were beat out with offers ABOVE asking list price. This has been VERY frustrating, and I am now looking into new homes builds because of their deals going on right now.
I bought an investment property in Columbia MO because the midwest is counter cyclical. This is proof I made a good move.
Here in South Florida, the bargains are definitely presenting themselves. This area is starting to shift from the bust cycle to the boom cycle. If you were ever thinking about buying a house- to live in or for an investment, now is the time to do so.
Very confusing map.
I just recently bought a house in las vegas. the original price was 427,000 and i got the house for 130,000. the las vegas market is terrible right now. its like a graveyard ever since obama told all people to not come to vegas, even though obama is here today in las vegas. and… i did not have any competion when buying the house too, so the bank completely gave me what i wanted with it.
California Real Estate always recovers
San Francisco stats are VERY deceptive – crime ridden poorer areas are decimated and dropped big time, middle class safer areas have dropped VERY VERY little….so…my conclusion, pity the poor, but SF is still VERY VERY high in many places.
6 years ago – my 1 car garage, 1 bathroom, 2 bedroom house cost me $122,500. It was great for one person… not so great now that I’m married. However, there’s no way I could sell it because values have dropped so much. Today, there are two houses down the block that are twice as big, with 2-3 car garages, with 2-3 bathrooms, and 4 bedrooms are listed for $36,000 and $45,000. Admittedly, they need a little work. However, the house that’s been fixed up across the street is closer to mine in size, but with a bigger garage, basement, more rooms, and a second bathroom and it’s listed for $50,000. Oh, and it SOLD a few months ago as a serious fixer-upper at $5,000. No, I’m not missing any 0’s there.
I can’t even get out of my ARM!
Cheap – Yes, as does everything….eventually. Give it 20 years and we should be back to our 2007 peaks. Until then, enjoy the next 20-30% drop, then consider buying.
Thanks for the map – pretty much what the map shows here in AZ. Prices are continuing to drop in most areas (but at a lower rate) and sales are picking up. Sales are mostly foreclosure and short sale properties though, but new home sales are starting to pick up a tad.
definitely “Buyers Market” with so many great programs outhere such as city programs, naca programs and the rebates, Taxes and incentives plus the low interes rate perfect for the buyer that had maintain a great credit scores it is paying off being responsible however buy only what you can afford do not go beyond the sales price you will not be able to pay!, bad for Sellers too many homes for sale to much competition and prices started to drop. also since some people are loosing their jobs no way they can pay the mortgage they are having to move out and outhere right now is Renters Market! also San Antonio still has a hope since a lot of business are moving in and will give jobs to those that need it and keep the market going
there I said my two cents !
yea the stats on San Francisco surprised me as well. I am from Marin County (other side of Golden Gate Bridge) and there hasn’t been much effect. Median home prices are 800,000 (for the County not town).
This is a great market to buy a new home or even an investment property. However, I wouldn’t advise a person that is not financially literate to take on the financial responsibility of homeownership. Whether a primary residence or rental property, buying a home involves some basic knowledge of finances, home maintenance and sometimes even good citizenship…none of which are required currilculum in public schools systems. Buying a home because of the bargain and without full understanding of the various financial demands of a home can lead to disaster, like the past 3 years. I purchased my 1st home when I was 21 (2001), because my father had groomed me to buy since I was 12 while working for him…a real estate investor. His mistakes, successes and even more mistakes helped to make me financially literate in regards to homeownership, so that little surprised me when purchasing my 1st, 2nd and subsequent homes. However, like having a baby, there is only so much for which one can prepare and some events are best left experienced, but not understanding the sleepless nights feeding or worrying for a small child is not something to jump into because of the bargain. If this economy has taught the American consumer one thing, that thing should be to not just read the fine print, but insist on understanding that fine print before signing….be financially literate.
In my area of DC suburbs (Virginia) prices have fallen 18% from its peak 3 years ago, however, stats show a much smaller decline from the high median point. However, our proximity to the nation’s capital gives us a fresh population turnover every 4 years and stable enough incomes to support a faster home market turnaround. The rush of buyers has actually turned pockets of counties to seller’s markets again.
Yes, pretty confusing. Red usually means positive and green negative – the red arrow is misleading. And the green state statistics appear at first glance to correlate to sales price rising or falling, not number of sales. Actually I’m still not sure what the green means, exactly.
I disagree with Joy–has she ever dealt with numbers? Or for that matter, traffic signs?
Green-growth, positive, increase, go
Red- warning, negative, decrease, stop
Blue and Yellow-neutral colors
Plus the key reads like a cryptic code. Keys should be quick and easily interpreted. It doesn’t make sense. California has had a huge dip, yet its corresponding dark color in the key is 1%.
Map FAIL.
Please don’t think we’re all rich? ,