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Southern Metros Dominate Top Performing Markets

While housing affordability has taken a bit of a hit nationwide as of late, particularly in the West, the South has made some impressive gains recently, creating a “new dynamic for the national spread in regional growth,” according to the Clear Capital November 2016 Home Data Index (HDI) market report.

The South and Midwest experienced over-the-quarter home price growth rates of 0.9 percent and 1.0 percent, respectively. The West still outpaced the rest of the nation in the third quarter with 1.1 percent price growth over-the-quarter, but at the same time, that number represented a decline from October’s numbers, which signals that growth may be slowing in that region.

Nationwide, home prices grew by 0.9 percent over-the-quarter in Q3 and by 5.5 percent over-the-year, according to Clear Capital.
Eight of the top 15 performing markets in November were metros located in the South, according to Clear Capital. The top metro for growth was Memphis, which posted a 2.6 percent price increase over-the-quarter in Q3.
“Elsewhere in the nation, quarterly growth appears to be holding relatively steady or even slowing down as fall sales data begins to come in,” Clear Capital reported.

The median home price in the South has risen by 5.7 percent since last year, but the median price per square foot in the top performing markets in the South is well below the national benchmark, according to Clear Capital. As a whole region, the South averages $106 per square foot compared to the national average of $135.

“As the Western region’s long standing housing price growth dominance is beginning to fade, the South is the clear frontrunner as we begin to look forward to 2017 for top performing markets,” said Alex Villacorta, Ph.D., Vice President of Research and Analytics at Clear Capital. “The region hosts several of the nation’s top-performing and most talked about metropolitan markets like Dallas, Nashville, Miami, and others. Combined with its relatively low cost of living, the region appears to be gaining popularity among home buyers, signaling a new opportunity for investors and traditional homebuyers alike as affordability remains an issue in many other markets, namely those in the West and Northeastern regions.”

About Author: Seth Welborn

Seth Welborn is a Harding University graduate with a degree in English and a minor in writing. He is a contributing writer for MReport. An East Texas Native, he has studied abroad in Athens, Greece and works part-time as a photographer.
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