Home values are “correcting” March 19, 2007Posted by Jay Medina in News and Information.
Nationally, home values are declining slightly for the first time in years. Overall, the values have declined about half of one percent over the past year, as measured by the Zindex home value indicator that measures the value of all homes in an area, not just those that recently sold.
Of course, home values fluctuate widely from region to region, even in local markets. According to a report in Business 2.0 magazine, the six metro areas that are most likely to see appreciable home value increases over the next five years are: Panama City, Florida (72 percent projected gain over five years); Vero Beach, Florida (63 percent); Bridgeport, Connecticut (63 percent); Lakeland, Florida (59 percent); McAllen, Texas (57 percent); and San Luis Obispo, California (40 percent).
Reasons for projected gains: Panama City has a new airport to be built next year that will open the area to new vacationers and residents. Vero Beach has a rising demand for housing along with moderate property taxes and very nice weather – factors that always drive growth. Bridgeport is in Fairfield County, an area of staggering home prices. This city offers somewhat lower prices, making it increasingly appealing to New York City commuters. Lakeland is in an active growth area, only 30 minutes from Tampa via Interstate 4, but prices are much lower than in Tampa. McAllen is experiencing a Hispanic baby boom and rising incomes. These factors are driving demand for bigger homes. San Luis Obispo currently offers a good inventory of homes at lower prices than other mid-California markets. And it’s in the center of a rapidly developing wine industry.