Forbes.com released a list of the top ten markets for home buyers today. The list was based mainly on real estate supply and demand, with markets showing an oversupply and low sales rate topping the list.
Using data from Moody’s Economy.com and the National Association of Realtors, Forbes compared in-balance market conditions to current market conditions, and tracked change in inventory and sales rate over the last year.
Areas that saw high investor concentration and/or a lot of new construction now have a large number of listed properties which outnumber potential buyers, resulting in lower asking prices as properties remain on the market longer than expected. This means prices have to come down, and incentives need to be offered to rein in buyers.
It’s doesn’t necessarily mean home prices are cheap in these cities, it simply means buyers have more bargaining power and possible incentives to buy in these areas as opposed to other areas.
It should also be noted that smaller cities not on the list may be even more favorable to buyers, but Forbes chose to focus on populations of 500,000 or more.
1. Tampa, Florida
2. Minneapolis, Minnesota
3. Miami, Florida
4. Kansas City, Missouri
5. Chicago, Illinois
6. Phoenix, Arizona
7. San Diego, California
8. Milwaukee, Wisconsin
9. New York, New York
10. Atlanta, Georgia
Funny how many of these cities used to be the hottest markets in the United States, and were likely part of a different top ten list at that time.