What hot micro-markets tell us about housing in the U.S.

When a small market is on fire, it has consequences for state and national data
  • Hot micro-markets can generate a very strange picture of average national home appreciation of about 6 percent, made up of many places at zero and a few on fire.
  • Every locality reports low inventory, obviously drawn down in the hot places, but the strangest single phenomenon continues: Where is the new construction?

No matter how many markets in which any real estate pro has worked, we always know our home towns best. And my market today is in a situation common to most hot markets in the U.S., shedding light on distorted national housing data.