Eight Hot Housing Markets That Are Cooling Down

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4. Portland-Vancouver, Ore.-Wash.
> Median home price: $259,900 (31st highest)
> Quarter-over-quarter change: 2.0% (47th highest)
> Year-over-year change: 8.3% (57th highest)
> Median days in inventory: 70 (55th lowest)

At the start of 2012, roughly half of all home sales in the Portland-Vancouver area took more than seven months to finalize. A year later, this figure had dropped to just 27 days, one of the most dramatic declines of the large housing markets. The boom has since subsided slightly, however, with a typical home remaining on the market for more than two months in the third quarter. At the same time, the number of homes on the market has increased for the first time in more than a year. Despite the cool down, there are signs the market remains very healthy. Local news reports, for example, note foreclosure rates in Portland are lower than they have been for years.

3. Orlando, Fla.
> Median home price: $178,900 (65th lowest)
> Quarter-over-quarter change: 0.5% (65th highest)
> Year-over-year change: 19.4% (17th highest)
> Median days in inventory: 67 (44th lowest)

In the first quarter of 2013, a typical Orlando home lasted only 25 days on the market, down from 162 days in the same quarter of 2012. However, demand for homes in the area tapered off as the year went on. By the third quarter, the median selling time for a home had risen to 67 days. Despite the increase in inventory, however, home prices remain fairly strong. As of the most recent quarter, prices are still up more than19% year-over-year, down only slightly from 25% since the first quarter.

2. Minneapolis-St. Paul, Minn.-Wis.
> Median home price: $220,000 (53rd highest)
> Quarter-over-quarter change: 0.0% (71st lowest)
> Year-over-year change: 17.0% (21st highest)
> Median days in inventory: 51 (tied for 11th lowest)

During the first quarter of 2013, a typical home in Minneapolis sold in just 27 days. This marked a decline from 163 days just one year before. However, by the third quarter, the figure was up to 51 days. At the same time, inventory has risen: In the first quarter, just over 11,000 homes were up for sale; by the third quarter, the number of properties available rose to more than 15,400. Although the Twin Cities’ housing market has cooled off a bit, new home construction in the area has recently picked up.

1. Ventura, Calif.
> Median home price: $500,000 (5th highest)
> Quarter-over-quarter change: 2.1% (45th highest)
> Year-over-year change: 25.3% (12th highest)
> Median days in inventory: 52 (18th lowest)

Between the first quarters of 2012 and 2013, the median list price for a home in Ventura, already one of the most expensive housing markets in the country, rose by nearly $100,000 to just under $450,000. Between the first and the second quarter of this year, prices rose by 9.1%, but the market appears to have cooled off, and prices were up only 2.1% last quarter. The number of unsold homes on the market jumped between the first and third quarters, from 2,079 to 3,706. Over that same period, the time it took to sell a home increased by more than 60%.