Recently WalletHub released it’s best and worst real estate market for 2017 and as usual there’s bound to be disagreements over their methodology and whether this is an accurate look at the real estate markets. However, overall it's a pretty interesting look at the best real estate markest for 2017.
First, let’s dive into their methodology. According to Wallethub they looked at 2 key dynamic for this list. “Real-Estate Market” and “Affordability & Economic Environment.” They then created a “key” of sorts for scoring purposes on a scale of 1 to 100. Here’s the score and keep in mind that “Real Estate Market” only makes up 80% of the actual score.
Best Real Estate Markets Of 2017 Scoring
- Home Appreciation Potential - Unfortunately this metric is based on the most faulty of data on the planet… Zillow. (5 Points)
- Median Home-Price Appreciation: (5 Points)
- Average Number of Days Until a House Is Sold: (5 Points)
- Share of Homes Selling for a Gain: (5 Points)
- Share of ‘Underwater’ Homes: (5 Points)
- Home Sales Turnover Rate: (5 Points)
- Ratio of Rent Price to Sale Price: (5 Points)
- Foreclosure Rate: (5 Points)
- Share of Delinquent Mortgage Holders(5 Points)
- Number of Bank-Held Homes: (5 Points)
- Vacancy Rate: (5 Points)
- Buy vs. Rent Breakeven Horizon: (5 Points)
- Share of Young Homes: (5 Points)
- Building-Permit Activity: (5 Points)
- Housing Affordability: Double Weight (5 Points)
- Maintenance Affordability: (2 Points)
- Population Growth Rate: (2 Points)
- Job Growth Rate: (2 Points)
- Unemployment Rate: (2 Points)
- Underemployment Rate: (2 Points)
- Median Credit Score: (2 Points)
Ultimately after looking at this list it’s pretty comprehensive. In the end, as a real estate agent I'd have to counter a lot of these. A great real estate market could simply be prices are rising.
I know there are folks that would say Detroit has some serious potential to make fools out of these experts.
Let’s look at some notable cities and finds on this list.
Dallas Fort Worth Metro has 4 of the top 5 cities!
When I first looked at this list I was blown away with the number of Dallas-Fort Worth cities that apparently are the “best real estate markets of 2017!” Congratulations to the homes in Frisco, McKinney, Allen and Richardson!
Georgia Cities in the Top 100 Real Estate Markets in 2017
As a Georgia Native, I have to talk about the cities in my neck of the woods. The Roswell GA real estate market ranks 31 as the highest in the metro Atlanta Area. While Athens and Atlanta come in the 70’s. Interestingly, both Roswell and Athens are listed as top cities to retire to in Georgia.
Surprise Real Estate Markets
I was surprised by the number of bank owned homes still in Florida. With the overall real estate market being good for several years now I found this interesting. So while Orlando comes in at 208, I was surprised none of it’s suburbs like Kissimmee ended up on this list.
Worst Real Estate Markets of 2017? (AKA Cities that should be upset)
I suppose any city left off the list might feel a bit miffed, but Detroit and it’s suburbs ended up with several bad ratings. At 294 overall (out of 300) it’s in the top 5 for homes with the least equity, homes that won’t appreciate, and most costly to upkeep. Counter that to Ann Arbor homes in Michigan which have the lowest foreclosure rate.
You see the wallet hub link here.