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We have all seen the property value on the coasts run up drastically over the past 5 years. During this same period, the Midwest has shown anemic property value increases. Kenneth Harney writing for the Columbus Dispatch is thinking that as the coastal regions cool down or lose up to 15 percent of their value, the Midwest may see some distinct appreciation on property values.

Equally important: The major heartland markets are nowhere near their home price growth limits, based on Cagan’s examination of household incomes. Beyond that, in Cagan’s view, many of the heartland metropolitan areas “are basically very nice places to live and work. They’ve got good schools, lots of parks and open space, plus you can afford to buy a home.”
Those qualities could accelerate population movements: Families and companies in high-cost, high-tax cyclic markets might consider relocating to more affordable interior areas of the country with solid economies and pleasant living environments.
Cagan thinks federal tax policies could support the trend as well. He envisions homeowners in equity-fattened but highcost cyclic markets cashing in their appreciation gains and putting their $500,000 tax-free gains into real estate in more moderately priced markets.
The bottom line: Understand where you are in the market cycle and adapt. Slower appreciation shouldn’t hurt cyclic markets; to the contrary, it should allow incomes to catch up to home prices. Improved affordability will help get the new cycle rolling again.  via The Columbus Dispatch

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