Based on the Burns Housing Market Hotness Index, seven U.S. housing markets are "sizzling" with new construction activity. The Index data is based on sales trends, supply, and demand.
Of the "Sizzling Seven", Nashville is the only city in the eastern United States. Labeled an hipster and tourism "mecca" due to the city's music and food scenes, millennials and down-sizing homebuyers are increasingly heading to Music City. John Burns Real Estate Consulting says that builders and municipalities "have struggled to keep up with the growth," adding, "cost creep remains a concern for local builders as fees and labor costs continue to rise." Jobs in Nashville are currently 23 percent more than its last peak, and unemployment is at 2.6 percent.
Homes continue to fly off the market in Seattle, Amazon’s and Microsoft’s backyard. Resale home prices gained 15 percent YOY. The stock prices of the 31 publicly traded local companies we track increased 51 percent YOY, the most of all large markets. Seattle also possesses less than 1 month of supply, the lowest of all markets! The extreme supply/demand imbalance pushes Seattle to the top of the index.
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