The U.S. real estate market is on fire. This is driven by low mortgage rates, solid incomes among middle and upper-class Americans, and the desire of people to move out of America’s largest cities, particularly on the East and West Coasts, often due to worries about the spread of COVID-19. S&P Case Shiller, the gold standard of home price measurement, shows national prices have risen by over 10% a month year over year for several months. In some markets, the number is much higher. Inventory in many markets has dropped due to brisk sales. This tightening has driven some home prices even higher and caused bidding wars for some houses. The demand for homes, however, is uneven from city to city.
Realtor.com looked at the markets where homes are selling the fastest and those where they are selling the slowest. Its analysis for April covers the 250 largest markets by population and is limited from that to one per state. The median number of days a home was on the market during the month was 43. In its analysis, realtor.com’s experts wrote:
On the other end of the spectrum, homes are moving slower in areas that have been affected more economically by the pandemic. To be clear, these markets aren’t languishing by any means; many are taking about the same time to sell as the average home sold just a year ago.
The market with the slowest home sales pace is Homa, LA where the median number of days is 79. The single biggest problem is employment in the area which has been affected by one factor. “In May 2020, the unemployment rate spiked to 11.2% as big oil and gas companies along the Gulf Coast laid off workers.” The industry has begun to recover because of rising oil prices, so the situation in Homa could change. And, the market is affordable. The median home price is $237,500.
Click here to read see the market where home prices are rising least.
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