Sold prices rose 28 percent in Detroit over the past year, topping the list of Pro Teck Valuation Services’ Home Value Forecast. Others included in the list were Palm Bay, FL; Port St. Lucie, FL; Merced, CA; and, San Francisco, CA.
“While Detroit has seen healthy gains this year, the Home Value Forecast rating system shows that Detroit is still a soft market,” said Tom O’Grady, CEO of Pro Teck Valuation Services. “Although examining one indicator is helpful, it’s important to analyze several home price indicators to best understand the health of a real estate market.”
This month’s HVF update also looked at the Collateral Analytics forecast for those top markets and found that San Francisco home prices are at an all-time high while Detroit is still trying to return to pre-crash levels. In Home Value Forecast’s rating system Detroit’s market is considered “soft” while San Francisco is “strong.”
They also noted that that while recent gains have been encouraging in Port St. Lucie, homes are still selling at 30 percent below previous highs. Combined with foreclosure sales at more than three times post-crash levels, Port St. Lucie has a “soft” market condition rating.
This month’s Home Value Forecast update also includes a listing of the 10 best and 10 worst performing metros as ranked by its market condition ranking model. The rankings are run for the single-family home markets in the top 200 CBSAs on a monthly basis. They highlight the best and worst metros with regard to a number of leading real estate market indicators including: sales/listing activity and prices, months of remaining inventory (MRI), days on market (DOM), sold-to-list price ratio and foreclosure percentage and REO activity.
“The West Coast continues to dominate the top ten markets, with the exception of San Antonio,” said O’Grady. “Also, looking at our top three for the month using Collateral Analytics Forecast, we see Bellingham, Cheyenne and Mt. Vernon, WA at or near all-time highs with forecasted continuing appreciation.”
“Syracuse, Scranton and McAllen, Texas join the bottom ten list this month,” said O’Grady. “Interestingly, MRI ranges from 3.18 in Jacksonville to over 17 in Atlantic City. Our bottom three metros, Jacksonville, FL, Jacksonville, NC and Rockford, IL also show a different story. All are not expected to appreciate significantly over the next five years, leaving those that purchased at or near highs a cloudy picture as to when they might be able to make a profit on a sale.”
July’s top CBSAs include:
Mt. Vernon-Anacortes, WA
San Antonio-New Braunfels, TX
San Jose-Sunnyvale-Santa Clara, CA
Santa Rosa, CA
The bottom CBSAs for July were:
Scranton-Wilkes Barre-Hazleton, PA
Atlantic City-Hammonton, NJ