Since we are a nationwide real estate company, we like to keep our eyes on the nation’s real estate markets. The year in real estate is trending toward upward pricing pressure and tight market conditions, but there are signs of cooling. Here’s our regional overview of the market as of the end of May, 2018.
Nationally, quarter-over-quarter growth rose at 1 percent from April to May, and home price appreciation is at 6.8% year-over-year. Breaking the numbers down by region, the West saw 1.3% appreciation (quarter-over-quarter), the Midwest saw 1 percent, the Northeast saw 1.4%, and the South quarter-over-quarter appreciation rose 0.7%. The Northeast region’s metro area that saw the largest gain is Providence, Rhode Island at 2.4% Quarter-over-quarter growth, and a 16% year-over-year growth.
While the Providence metro area led home price appreciation regionally, Pittsburgh saw a rebound and prices rose to .48% growth (QoQ) Other Northeast metro areas saw cooling trends in home price appreciation, with New York, Philadelphia. Rochester and Hartford all experiencing a slow down. Distressed saturation in these metro areas ranged from 12.1% (Rochester) to 18.9% (Philadelphia-Camden-Wilmington.)
The south experienced a more modest uptick in housing appreciation at .07%. Atlanta and Nashville were the top performing metro areas in the South region, with Atlanta appreciation rising 0.19% to 1.58 QoQ growth, and Nashville rising 0.2% to 1.57% QoQ growth. Other metro areas in the South region saw negative growth, including New Orleans (negative .51% growth QoQ) San Antonio (negative .37% growth QoQ) and Houston (negative .33% QoQ) Distressed saturations ranged from 1.1% (San Antonio) to 13.1% (Birmingham). The South is the only region nationally that saw negative appreciation.
The Midwest region saw strong growth – 1% for May. Detroit saw the largest growth, rising .052% to 1.63% QoQ growth. Other metro areas that saw appreciation were Chicago – rising .05% to 1.41% QoQ growth, with Dayton and Columbus close behind at a .02% rise in appreciation. Poor performing metro areas in the Midwest region include St. Louis, Cincinnati, Louisville and Milwaukee. These metro areas saw a drop in appreciation, but are still in a growth pattern – no negative appreciation in these areas. Distressed saturation ranged from 12.3% (Columbus) to 17.5% (Chicago-Naperville).
The West is close behind the Northeast, with appreciation growth coming in at 1.3% for May. The hottest markets in the West region are San Jose and Las Vegas, although Las Vegas slowed in April – only up .01%, with a 2.33% growth QoQ. San Jose rose .33% to 2.16% QoQ growth. Other top performing markets in the West include Seattle, Los Angeles, Phoenix and Sacramento – all experiencing QoQ growth. Distressed saturations in this region ranged from 2.4% in the San Jose market, to 12.8% in the Bakersfield metro area.
Edward Huletz, Principal Broker: “The markets across the country have begun to cool slightly, with the downward trend concentrated in the South region. There are still very hot markets around the country, with high performing market concentrations in the West and Midwest regions, along with some standouts in the Northeast.”