BILOXI -- Atop the list of the 10 Hottest Housing Markets in the United States sits Biloxi.
Based in Destin, Fla., Housing Predictor provides independent real estate market forecasts for more than 250 cities across the country. Federal money to rebuild more than 1,000 houses at Keesler Air Force Base and the city's steady progress to rebuild from Hurricane Katrina are what landed Biloxi at the top of the list.
"Here in this sour real estate market we're the market that is seeing the best appreciation," said Eric Smith, a Realtor with Coldwell Banker United Realtor in Ocean Springs.
Although sales are significantly below last year, Smith said, "Our market is strong." He said credit is available for those with credit scores of 620 or better.
Biloxi Community Development Director Jerry Creel said the city was also just named one of the best places to raise a family, "which is going to make it favorable for housing development." The city is averaging $4 million each week in residential and commercial construction permits, and last week issued $15 million in permits, including permits for apartment complexes on Motsie Road and on Woolmarket Road.
"We have construction going on in just about every area of Biloxi," Creel said.
"An increase in construction will alleviate the supply problems that have kept prices rising in Biloxi since Katrina devastated the area," said Ken Fears, manager of regional economics for The National Association of Realtors. But building 1,000 homes doesn't ensure home prices will appreciate, and he said once the construction boom is over, many of those jobs will be lost.
"The main component for a healthy and steady housing market is demand," and he said people who have good jobs want to own a home. "So, once the construction boom is over - and it will end eventually - some industry will need to replace it."
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