Markets & Economy

‘Hot’ markets increase — except on East Coast and in rural areas

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Takeaways:

  • The average months of remaining housing inventory is 6.1 nationwide, according to a Pro Teck forecast.
  • In June, the number of hot markets increased by 45 percent, with the number of 10-plus MRI areas dropping by 36 percent from the same time last year.
  • East Coast and rural markets have the highest MRI numbers.

An analysis of the nation’s top 200 markets shows the average months of remaining housing inventory (MRI) sits at 6.1.

According to Pro Teck Valuation Services’ Home Value Forecast, this figure represents a decrease of more than 12 percent from the same time last year.

Pro Teck states MRI is a reflection of supply and demand — with an MRI of less than 4 considered a “hotter” or “seller’s market.” Those with a score over 10 are considered a “cold” or “buyer’s market.”

In June, the number of hot markets increased by 45 percent, with the number of 10-plus MRI areas dropping by 36 percent from the same time last year.

A number of markets with lowest MRIs are in California, with San Francisco leading the pack with a MRI of 1.5.

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holbox / Shutterstock

holbox / Shutterstock

Overall, the top 10 “hotter” markets all have an MRI that is less than 3.5.

Besides San Francisco, other top markets with low MRIs, include:

  • Bellingham, Washington
  • Boise, Idaho
  • Olympia-Tumwater, Washington
  • Phoenix, Arizona
  • Sacramento-Roseville-Arden-Arcade, California
  • San Antonio-New Braunfels, Texas
  • San Diego-Carlsbad, California
  • San Jose-Sunnyvale-Santa Clara, California
  • Santa Rosa, California
  • Seattle-Bellevue-Everett, Washington

HVF-Remaining_Inventory-National_and_Loc_l_Trends-02

According to Pro Teck, East Coast and rural markets have the highest MRI numbers.

Alexanderphoto7 / Shutterstock.com

Alexanderphoto7 / Shutterstock.com

“Cold” markets include:

  • Huntsville, Alabama
  • Lake County-Kenosha County, Illinois-Wisconsin
  • Atlantic City-Hammonton, New Jersey
  • Baltimore-Columbia-Towson, Maryland
  • Hagerstown-Martinsburg, Maryland-West Virginia
  • Huntington-Ashland, West Virginia
  • Jackson, Michigan
  • Jacksonville, Florida
  • Jacksonville, North Carolina
  • Rockford, Illinois

HVF-Remaining_Inventory-National_and_Loc_l_Trends-03

“Home Value Forecast believes all real estate is local and that national numbers mean little when you are buying or selling in a particular market,” said Tom O’Grady, CEO of Pro Teck. “Although the national trend seems promising, it’s important to evaluate fundamentals at the metro level.”

Email Erik Pisor.