Dive Brief:
- Pro Teck Valuation Services' October Home Value Forecast update has named the hottest housing markets in the U.S., but the group warned that all of the metropolitan areas on the list have less than four months of housing inventory left, HousingWire reported.
- That level of inventory, or lack thereof, is usually associated with a seller’s market — which means more more bad news for buyers, as all 29 areas have recently seen double-digit decreases in active listings.
- Pro Teck generates its list according to leading real estate market indicators such as sales/listing activity and prices, months of remaining inventory, days on market, sold-to-list price ratio, foreclosure percentage and REO activity.
Dive Insight:
"While new housing units are on the upswing, the numbers are still at historical lows," said Tom O'Grady, CEO of Pro Teck Valuation Services. "That, combined with approximately 2.5 million single-family homes becoming rental units since the crash, has left the U.S. with a limited housing supply."
Inventory problems have been plaguing the housing market for months, as potential buyers are frustrated with a lack of affordable options. In September, the National Association of Realtors study found that "insufficient" new home construction in the majority of U.S. metro areas is exacerbating the growing problems of a lack of available inventory and "unhealthy" home price growth.
The following are the Top 10 "hottest" markets and their months of remaining inventory:
- Anaheim-Santa Ana-Irvine, California - 3.83
- Bellingham, Washington - 2.50
- Boise City, Idaho - 2.63
- Charlotte-Concord-Gastonia, North Carolina-South Carolina - 3.96
- Chico, California- 3.72
- Durham-Chapel Hill, North Carolina - 3.89
- Grand Rapids-Wyoming, Michigan- 3.51
- Lafayette-West Lafayette, Indiana - 3.61
- Los Angeles-Long Beach-Glendale, California - 3.78
- Medford, Oregon - 3.68