Booming real estate areas get a lot of attention, but Americans are told they should look at the other end of the housing market thermometer.
Cold housing markets are where the deals are, according to a new report from Realtor.com.
In booming markets, the lack of homes for sale and the large number of people looking to move into those areas lead to aggressive bidding wars. Most of the United States has been booming, which has led to current average prices.
But in some parts of the United States, the opposite is happening: homes are not selling, leading to price cuts.
Most of the coldest markets are in the South, particularly along the Gulf, in states such as Texas, Florida and Louisiana. Of the 20 coldest, 15 are in those three states.
Lake Charles, Louisiana, was the coldest metropolitan area in the country
Realtor.com based its analysis on several factors, including days on market, price changes and unique listing page views per property. Older properties sell slowly, have frequent price reductions and receive few views.
That was the case in Lake Charles, Louisiana, which was the coldest metropolitan area in the country.
The rest of the top five coldest are Houma, Louisiana; Panama City, Florida; Punta Gorda, Florida; and Naples, Florida.
Lake Charles has massive four-bedroom, two-bath homes with stunning country views for $360,000.
The entire United States has faced high mortgage costs that have made it more difficult to purchase a home.
But the Gulf area also has high home insurance costs because of the higher likelihood of major storms damaging property. This discourages people from buying there.
‘For homebuyers looking for convenience, southern markets offer much-needed hospitality’ Realtor.com economist Ralph McLaughlin said.
‘Inventory, especially of entry-level homes, is growing, they’re moving more slowly and sales prices are actually down compared to last year.’
Realtor.com based its analysis on several factors, including days on market, price changes and unique listing page views per property. Older properties sell slowly, have frequent price reductions and receive few views.
The second coldest market was Houma in Louisiana
Panama City Beach in Florida was the third coldest market, with properties selling slowly
Tiki Bar at Harbor Walk, located on the Peach River in Punta Gorda, Florida. Punta Gorda has the fourth coldest real estate market in the U.S.
The fifth coldest was recorded in Naples, Florida
Are these markets cold for some reason?
Houses in these areas do not sell quickly and therefore their price is reduced for some reason.
So there will be deals there, but don’t buy a house just because it’s cheap.
“What’s the catch? Well, if you have to sell early, you’re going to get the other side of the coin,” McLaughlin said.
And he noted that there’s no need to rush into a cold market: “Homebuyers in cold markets can take comfort in the homebuying process by not needing to move quickly and not needing to buy the first home they see.”
