Realtor.com, in association with Move Inc., recently revealed a list consisting of several cities that have facilitated a sizable housing recovery across the United States. It highlights specific metropolitan areas that have taken significant steps towards recovery in the second quarter of 2013. Otherwise known as the Turnaround Towns Report, the list pays tribute to America’s top 10 cities leading the nation in recovery.
In order to better understand the current condition of the housing sector, Move Inc. proceeded to analyze key housing indicators recorded by Realtor.com in the second quarter of this year. The primary algorithm used to complete the study accounted for the acceleration of inventory, median list price and days on market as well as weighted search and listing activity on Realtor.com.
Data revealed by the study has indicated that the median age of inventory dropped 14.4 percent over the past year, with typical homes selling in 83 days between April and June of this year. Subsequently, the average listing price for a house jumped 5.4 percent from this time last year. The median listing price for a home is now sitting at $196,000. Perhaps even more significantly, is the rate in which homes are being made available. On a national level, the number of homes for sale dropped by 10.3 percent. Approximately 1.8 million homes were listed on any given day in the second quarter of 2013.
More than half of the Turnaround Towns Report is comprised of cities in the Sunshine State of California; with Oakland, Orange County, Santa Barbara and San Jose leading the way. The following is a comprehensive list of the top 10 cities leading the housing sector recovery:
1. Oakland, Calif.
2. Orange County, Calif.
3. Santa Barbara, Calif.
4. San Jose, Calif.
5. Seattle-Bellevue-Everett, Wash.
6. Los Angeles-Long Beach, Calif.
7. Detroit, Mich.
8. Portland-Vancouver, Ore.
9. San Diego, Calif.
10. Reno, Nev.
Of particular interest to those familiar with the housing sector, is the inclusion of Detroit on the Turnaround Towns Report. Once plagued by bankruptcy, Detroit now serves as a testament to the progression America’s economy has made thus far. Despite their recent financial crisis, Detroit has posted strong improvements in the second quarter. According to Realtor.com, Detroit’s listing prices are 37.8 percent higher than this time last year.
“Detroit has made remarkable progress in the last year, shrinking its inventory of unsold homes by more than 26 percent and becoming one of the most balanced markets in the nation,” said Steve Berkowitz, CEO of Move. “We’ll be watching the inventory levels in the months ahead, but if this past quarter is any indication, Detroit won’t be giving up without a fight.”
While not as significant as those on the Turnaround Town Report, other cities throughout the United States are showing signs of progression as well. Improved economic conditions are permitting once struggling cities to flourish more than they have in recent years. These all serve as indicators as to which direction our economy is heading.