I've often written about our local "oasis" and the strong market here. But where else in the country are these areas, and why are they "bucking the trend"? Well, if the economy's OK, the local real estate values are, too. For example, Beaumont, Texas is looking to recruit 18,000 new employees for its expanding petrochemical industry...the average home price there was up over 10% in 2007. Also, those metropolitan areas where housing is still relatively affordable were more likely to see increases. If more than 40% of the homes could be purchased by a family with a medium income for the area, prices increased more than the 3.2% national average in 2007. A few of these "hot pockets" are: Ogden, Utah (15.2%), Albuquerque, New Mexico (9%), Asheville, North Carolina (10.9%), and Richmond, Virginia (6.9%).
Prices are truly sizzling in Wenatchee, Washington, where an influx of retirees have moved prices up 23.5% in the past year, and Salt Lake City, where a newly booming tech industry has brought about a 16% increase. A post-tech-bubble in Seattle and an expanding energy industry work force in Grand Junction, N.C. have increased home values in those communities by over 9%.
How to account for these exceptions? Mostly the law of supply and demand, with some added element of wild speculation.
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