Hot Spots Worth Noting
According to the NAR’s monthly report, existing home sales rose for the first time in eight months in October. While .5% may not seem like much, the fact that it was an increase and not another decrease was good news for many. A few areas/cities in the U.S. that are doing well in terms of either price, price growth or a notable increase in demand are listed below:
The New Jersey coast experienced a year-over-year increase in median sale price of 7.3%. Places like Monmouth, Ocean, Middlesex and Somerset Counties have seen the median sale price rise to $415,000 in the third quarter of 2006 from $386,900 in the third quarter of 2005.
The fastest year-over-year increase for single-family home prices in the third quarter of 2006 was found in Salem, OR where the average home prices in the metro increased almost 25% to $228,000.
East Nashville is drawing a lot of interest from speculators and investors who have been purchasing neglected small homes in the East Nashville neighborhoods of Cleveland Park, Maxwell Heights and McFerrin Park. Unfortunately, the rapid buy up by these groups has caused a general slowdown in first home-buyer sales given that the price of many of these starter homes has been driven up beyond the financial means of many.