Hot property areas get a lot of attention – but Americans are being told they should be looking at the other end of the housing market thermometer.
Cold housing markets are where the bargains are, according to a new report by Realtor.com.
In hot markets, a lack of homes on sale and lots of people looking to move to the areas lead to aggressive bidding wars. Most of America has been hot, leading to average prices now
But the opposite is happening in some parts of the US – with homes not selling leading to price cuts.
Most of the coldest markets are in the South, and in particular along the Gulf in states like Texas, Florida and Louisiana. Of the coldest 20, 15 are in those three states.
Lake Charles, Louisiana, was the coldest metro in the country
Realtor.com based its analysis on several factors – including days on the market, price changes, and unique listing page views per property. Colder properties with sell slowly, have frequent price cuts and get few views.
That was the case in Lake Charles in Louisiana, which was the coldest metro in the country.
The rest of the coldest five was made up with Houma, Louisiana; Panama City, Florida; Punta Gorda, Florida; and Naples, Florida.
Lake Charles has huge sprawling four bed, two bath homes with stunning views of the countryside for $360,000.
The whole of the US has faced high mortgage costs that have made it harder to afford a home.
But the Gulf area also has high home insurance costs due to the higher chance of big storms damaging property. This puts people off from buying there
‘For homebuyers looking for comfort, Southern markets offer up much-needed hospitality,’ Realtor.com economist Ralph McLaughlin said.
‘Inventory – especially of entry-level homes – is growing, they are moving slower, and listing prices are actually down compared to last year.’
Realtor.com based its analysis on several factors – including days on the market, price changes, and unique listing page views per property. Colder properties with sell slowly, have frequent price cuts and get few views.
The second coldest market wsa Houma in Louisiana
Panama City Beach in Florida was the third coldest market, with properties slow to sell
Tiki Bar at Harbor Walk located on the Peach River in Punta Gorda, Florida. Punta Gorda has the forth coldest housing market in the US
The fifth coldest was in Naples in Florida
Are these markets cold for a reason?
Houses in these areas are not selling quickly – and are thus being reduced in price – for a reason.
So, there will be bargains there – but don’t just snap up a home because it is cheap.
‘What’s the catch? Well, if you have to sell soon, you’ll be faced with the other side of that coin,’ McLaughlin said.
And he pointed out that there is no need to rush in a cold market: ‘Homebuyers in cold markets can be cool in the homebuying process by not needing to move fast and not needing to jump on the first home they see.’
