Booming real estate areas get a lot of attention, but Americans are being told they should look at the other end of the housing market thermometer.
Cold real estate markets are where the bargains are found, according to a new report from Realtor.com.
In boom markets, the lack of homes for sale and the large number of people looking to relocate to those areas leads to aggressive bidding wars. Most of America has been in a period of high activity, leading to average prices today
But the opposite is happening in some parts of the United States: homes are not selling, leading to price drops.
Most of the coldest markets are in the South, and particularly along the Gulf Coast, in states like Texas, Florida and Louisiana. Of the 20 coldest states, 15 are in these three states.
Lake Charles, Louisiana, was the coldest metropolis in the country
Realtor.com based its analysis on several factors, including days on the market, price changes and the number of unique listing page views per property. Coldest properties sell slowly, experience frequent price drops and get few views.
This was the case in Lake Charles, Louisiana, which was the coldest metropolis in the country.
The remaining five coldest cities were Houma, Louisiana, Panama City, Florida, Punta Gorda, Florida, and Naples, Florida.
Lake Charles offers sprawling four-bedroom, two-bathroom homes with stunning countryside views for $360,000.
The entire United States is facing high mortgage costs that make it more difficult to buy a home.
But the Gulf region also has high home insurance costs because of the higher risk of property damage from major storms. That discourages people from buying there.
“For home buyers seeking comfort, Southern markets offer much-needed hospitality,” said Ralph McLaughlin, economist at Realtor.com.
“Inventories – especially entry-level homes – are increasing, they are selling more slowly and sales prices are actually down from last year.”
Realtor.com based its analysis on several factors, including days on the market, price changes and the number of unique listing page views per property. Coldest properties sell slowly, experience frequent price drops and get few views.
The second coldest market was Houma, Louisiana.
Panama City Beach, Florida, was the third coldest market, with properties slow to sell.
The Tiki Bar at Harbor Walk is located on the Peach River in Punta Gorda, Florida. Punta Gorda has the fourth coldest real estate market in the United States
The fifth coldest weather occurred in Naples, Florida
Are these markets cold for a reason?
Homes in these areas don’t sell quickly – and therefore their prices drop – for a reason.
So there will be some good deals, but don’t rush into a house just because it’s cheap.
“What’s the problem? If you have to sell soon, you’re going to be faced with the other side of the coin,” McLaughlin said.
He also stressed that there is no need to rush into a cold market: “Homebuyers in cold markets can be calm in the home buying process by not having to act quickly and not having to jump on the first house they see.”
