Posted on Thursday, February 17, 2011
While home prices continue to fall in many markets across the country, CNNMoney.com has compiled a list of cities that are expected to defy that trend.
Here are six metro areas expected to record some of the largest price gains in real estate by 2012:
1. Tacoma, Wash.
Median home price: $240,000
Projected gain by September 2012: 11.8 percent
Tacoma is in the right location for growth: It’s situated next to the Washington capital and has a port, rail terminus, and access to the mountains and Puget Sound. It also offers plenty of developable land than it’s bigger neighbors, such as Seattle.
2. Palm Bay, Fla.
Median home price: $141,000
Projected gain by September 2012: 9.4 percent
This area was expected to become a popular retirement area but overbuilding caused prices of existing homes to sink 50 percent below replacement costs, Linda Schlitt Gonzalez, a Coldwell Banker broker, told CNNMoney.com. The city is expected to regain some of its growth, now becoming an affordable place for retirees to settle down.
Median home price: $280,000
Projected gain by September 2012: 7.5 percent
Memphis has had a decrease in foreclosures and continues to add jobs, which are significant factors that are expected to help it climb into rebound mode. Plus, it has affordable housing: Homes can be purchased for $138,000, says John Gnuschke, director of the Sparks Bureau of Business and Economic Research at the University of Memphis.
4. Rochester, N.Y.
Median home price: $125,000
Projected gain by September 2012: 5.3 percent
Affordability ranks high here: The median home price in Rochester is $125,000, while the median family income is more than $64,000. Real estate prices remained low during the housing boom, and foreclosures aren’t an issue here: Rochester ranks 196th out of 206 housing markets for foreclosure filings, according to RealtyTrac.
Median home price: $133,000
Projected gain by September 2012: 4.6 percent
The Pittsburgh real estate market also remained relatively stable over the last few years with home prices having little fluctuation (it ranks 165th of 206 markets for foreclosure filings). Pittsburgh also has a low unemployment rate, and with a moderately high median family income of $62,400, homes are very affordable here.
Median home price: $375,000
Projected gain by September 2012: 3.7 percent
Seattle is a hot-spot for well-paying jobs with Microsoft, Amazon, and Boeing, which is expected to help its recovery. Plus, the city has a limited housing supply because of it’s position between mountain and sea.