Market Watch: Healthiest Housing Markets in US

As you are probably aware as an investor, markets have their ups and downs. Some recover more quickly than others. Also as an investor, it is your duty to know where those markets are. How is your farm area’s health?

Recently  Zillow ranked the healthiest real estate markets in the US.  The “health” of housing markets is ranked on a scale of zero to 10. The rating takes into account several sets of data, including home value increases or decreases and the average number of days homes remain on the market.

It is amazing that all but one of these markets is in the same state. One would expect that the Sand States would be on the list. Check out the top 5 healthiest market right now in the US and some might surprise you.


#1 Pittsburgh, Pennsylvania (9.72)
We’re #1! Did this really surprise anyone? Despite the longest average time to sell a home on this list at 111 days, Pittsburgh takes the title of the “Healthiest Market in America”, thanks to having some of the most responsible and financially solid homeowners in the country. Not to mention they have been riding the recovery wave all year long.

With the lowest rate of mortgage delinquency on the list,  (less than 4%) Pittsburgh homeowners are sitting pretty. When you combine this with an extremely low foreclosure rate and a very affordable market (average home value is $123,300), it’s not a bad time to be a Pittsburgh homeowner.

#2 San Jose, California (9.69)
In addition to being the healthiest market in California, San Jose is also one of the most expensive in the nation, with an average home value of $815,000. Can you imagine??

The high home prices make the fact that the average home sells in just over six weeks even more impressive. And, only 6.7% of homeowners have negative equity in their homes, which is one of the lowest rates in America.

#3 Santa Rosa, California (9.53)
Santa Rosa is the largest metropolitan area near California’s north coast, and makes up much of Sonoma County in California’s wine country.

Demand for homes is booming in the area, causing rapidly rising prices. The population is growing quickly too, with the population expected to grow almost 17% through 2020. Over the past year alone, home values in the Santa Rosa area have increased by more than 21%, and are expected to grow another 11.6% this coming year.

#4 San Francisco, California (9.11)
SF is among the healthiest markets for a couple of reasons. For one thing, homes are selling incredibly fast. Despite gaining 14% since this time last year, the average home in San Francisco only sits on the market for an average of 47 days, or less than seven weeks.

Additionally, homeowners in San Francisco are in pretty solid financial shape, and just 10.5% of homeowners with a mortgage have negative equity in their homes. This indicates the post-recession rebound has been very strong in the area.



#5 Los Angeles, California (9.04)
Despite LA having its average home  worth almost $540,000, the second largest metropolitan area in the US is doing very well.

Home values have risen by 15% over the past year, and are projected to gain another 8.8% over the next 12 months. Los Angeles has a very low level of foreclosures on the market. Lastly, about 88% of homeowners make money when they sell their homes.

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Erik Hitzelberger has been Real Estate Investor since 2007. While learning the ropes in the market down-cycle, he now teaches others how to use his systems and leverage other people’s expertise to achieve their own goals.

Erik Hitzelberger – who has written posts on Part Time REI.

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About Erik Hitzelberger

Erik Hitzelberger has been Real Estate Investor since 2007. While learning the ropes in the market down-cycle, he now teaches others how to use his systems and leverage other people's expertise to achieve their own goals.

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