November 17th, 2011 12:00 PM by Eileen Denhard
According to a new data analysis by Realtor.com,
Miami is paradise found again, leading the list of the "Top
10 Turnaround Towns" — cities where the real-estate market has done best
Six of the 10 cities on the list are in Florida,
which is probably looking pretty good to Northerners about now — especially with
real-estate prices lower than they have been in years. Investors, both foreign
and domestic, have been buying up bargain-priced Florida properties lately. The
percentage of home sales to foreign buyers in Florida is 31% so far this year,
compared with 10% in 2007, Realtor.com
Phoenix is also on the list, for similar reasons.
But a few of the turnaround cities may surprise you: Boise City, Idaho; Fort
Wayne, Ind.., and Ann Arbor, Mich., join the warm-weather destinations.
"With a 25% reduction in inventory over the past year and time in inventory
down to 90 days compared to the national median of 107, Ann Arbor is one of the
few markets in the country that is close to becoming a sellers market,"
Realtor.com wrote about the college town.
Realtor.com looked at data from 146 markets to compile its list of
third-quarter turnaround towns. All the towns on the list experienced
year-over-year median price appreciation, reduction in age of inventory,
reduction in total inventory and lower unemployment form a year ago.
The top 10 turnaround cities, in order, are:
You can see the statistics here.
Don't get out the confetti yet.
While inventory is down in those markets, the rate
of unemployment remains above 10% in all the Florida cities. The decline in
inventory is likely more tied to the foreclosure slowdown caused by the
robo-signing crisis, particularly in Florida, which is a judicial
foreclosure state. The uptick in sales has come because of investor
activity, not an improvement in the local economies.