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. “Every day there’s a new news story with a list of top performing cities -- but do these cities really reflect what is going on in the real estate market?,” Tom O’Grady, CEO of Pro Teck Valuation Services, said in a statement. “Much like how a doctor must look at multiple vital signs to make a diagnosis, we analyze multiple data points, track trends and use consistent methodology in our rankings.” Sold percent price change, alone By solely analyzing year-over-year sold percentage price change, the following markets came out on top: In reality, only two of these markets -- Stockto...
- 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.