Market Action Slips Away From Coasts

Based on a statistical analysis of housing price cycles in 100 major metropolitan areas, Christopher Cagan, director of research and analytics for First American Real Estate Solutions in Santa Ana, Calif., concludes that . . .

" . . .significant real estate investment opportunities during the balance of the decade will be found in local markets where home prices typically plod along from year to year and where job growth is favorable and housing prices are moderate. "

Conditions for above-average price increases and home building will be particularly favorable in Texas, Colorado and the energy belt areas of the Southwest, he believes. Cagan says that Texas is the real beneficiary of the energy crunch. In addition, major heartland markets are nowhere near their home price growth limits and that, along with an attractive qualify of life, could spur population movements to them. For cyclical housing markets — including most of California from the San Francisco Bay area south, much of Florida, the Washington area, Baltimore, New York and much of New England — boom times have burned themselves out by pushing housing prices to unaffordable levels. (www.washingtonpost.com) Washington Post (5/27/06); Kenneth R. Harney If you enjoyed this post, subscribe and get FREE updates! Appraisal , Real Estate , Appraiser ,Marketing , Realtor