Earlier this year Miami was ranked as the No. 1 fattest city in the United States (by Men’s Fitness). Strange, considering the mere mention of Miami typically conveys images of picturesque beaches, modern mansions, exotic cars, and beautiful (read: thin) people. But this month the sunny mecca earned another No. 1 spot that is sure to please the Miamians, and anyone hoping to become one: Miami is the best city for housing recovery.
The title was earned due to an increase in sales activity combined with the fact that foreclosure resales were the lowest percentage of overall sales. Since 2008, Miami’s transactions are up 27 percent and only 3.5 percent of that is a consequence of foreclosure resales. Out of all the largest metropolitan areas, the top 10 for housing recovery are:
10. San Jose, California
9. Santa Barbara, California
8. Redding, California
7. Denver, Colorado
6. Bremerton, Washington
5. San Luis Obispo, California
4. Salem, Oregon
3. Colorado Springs, Colorado
2. Lincoln, Nebraska
1. Miami/Fort Lauderdale, Florida.
To put it in perspective, No. 10-ranked San Jose’s sales are up 12 percent from last year and foreclosures account for 33 percent of those transactions.
Does this mean the housing market has made a turn for the better? It’s suspect. Not all major cities are on the mend. Las Vegas for example has seen an increase in sales of 40 percent, but 67 percent of those are foreclosure resales. In consideration of the drastically different results across the U.S. housing markets, experts aren’t convinced that the market is making a full recovery. There are still extremely high unemployment and mortgage default rates. However, investors are taking this opportunity to jump back in the game. The high rate of distress sales has driven all real estate prices down, and those with cash are king. Now is a perfect opportunity to acquire real estate in desirable areas like Miami and San Jose so when the market does turn around and stabilize, you can cash in on those investments. So, stop contemplating when to buy that beach house in Miami, ski cottage in Colorado, or new home in Silicon Valley—it’s time.