What really makes a hot housing market?

  • An increase in average or median sale price alone doesn’t necessarily indicate a lively market.
  • While each showed strong sold price increases, Punta Gorda and Port St. Lucie both came in as “soft” due to a high percentage of foreclosure sales.
  • Most cities on the top 10 CBSAs featured 100 percent sale-to-list price ratio, aside from Grand Rapids at 99.35 percent.

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The phrase “hot housing market” gets thrown around frequently, but a jump in sale price alone doesn’t necessarily indicate a lively market, according to Pro Teck Services’ May Home Value Forecast report.

Determining a truly hot housing market takes deeper evaluation, such as sold price percent change, list-to-sale price ratio and percentage of foreclosure sales, among others.