I recently read an article on Yahoo! Real Estate talking about 5 cities that are ripe for a Real Estate rebound in 2012. The list was compiled by Forbes.com. I wasn’t surprised to see San Jose, CA making the list. Jump in New Home Construction, Better Employment and increase in migration is going to contribute to this rebound. San Jose Real Estate Market Report shows the city sold more homes in 2011 compared to 2010 even with a very low level of inventory – a stats not many city can boast of.
This is what Forbes had to say about the report:
The Golden State has gotten a lot of attention for its economic woes, but San Jose is a veritable oasis of prosperity. Employment in the capital of Silicon Valley is expected to expand 3.3% this year and it logged net in-migration in 2010 of 4,840 people. Job and population growth are fueling housing demand: New home construction in the area was up a whopping 97% in 2011 third quarter compared with the year earlier.
All of the cities that made our list share one common factor: a relatively strong job market. For real estate to do well you want to see two things: that incomes are growing rapidly like they are in a market like San Jose and that the growth in jobs attracts other people to that market, says Ingo Winzer, founder and president of Local Market Monitor. However, job growth should be looked at as a bullish housing indicator only if the unemployment rate is already relatively low that suggests local companies are creating new jobs rather than rehiring for positions they cut during the recession.
Other Cities Included
- Boston, MA
- Houston, TX
- Pittsburg, PA
- New Orleans, LA