If you are looking for where the housing turnaround is occurring and homes are selling, see the hardest hit areas in California, Florida, and Arizona. Home sales improvements are occurring, but in the top 10 zip codes for improved sales, don’t expect to sell you home.
What is he saying, don’t expect to sell you home in the places that sales are improving the most? That makes no sense.
Alas my dear readers, it does. The homes that are selling are not new construction or resales, they are foreclosures and short sales. Fairfield, California leads the way, but 83% of the sales in the zip code are distressed sales. Rialto, California is next, and 90% are distressed.
The only cities in the top 10 that have close to 50 percent non distressed sales are San Diego and the Simi Valley.
So while the idea of these cities turning around is great, the reality is that reselling ones home in these regions is still off the table. The huge inventory of foreclosures and short sales are just being processed.
Top 10 Most Improved Selling Zip Codes
1. 94533, Fairfield, CA (Fresno) (83% Distressed Sales)
2. 92376, Rialto, CA (Riverside-San Bernardino-Ontario) (90%)
3. 91342, Slymar, CA (Los Angeles-Long Beach-Santa Ana) (69%)
4. 92126, San Diego, CA (52%)
5. 33914, Cape Coral, FL (Fort Meyers) (70%)
6. 93065, Simi Valley, CA (Oxnard-Thousand Oaks-Ventura) (47%)
7. 95123, San Jose, CA (57%)
8. 85379, Surprise, AR (Phoenix-Mesa-Scottsdale) (71%)
9. 93722, Fresno, CA (Madera) (59%)
10. 95624, Elks Grove, CA (Sacramento-Arden-Arcade-Roseville) (69%)
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Good information. It’s good to know where the activity is. The reason short sales are selling so well is because that’s the market. Nothing is selling for market value, and a smart investor can pick up properties for unbelievable prices and still flip it at a discount and make a nice profit.
Queen Creek and Maricopa in the Phoenix area represent similar cities and zip codes with an accelerating level of homes under contract. Why? For the reasons you mentioned above – foreclosures and short sales. I wonder if BusinessWeek would recognize these in a new review.
Since the October/November timegrame, we have seen Queen Creek go from 24% of homes under contract to 33% of available homes. Maricopa has gone from 21% to 30% of available homes being under contract.
Thanks for calling out this list.
David Lorti
Yes, they are mostly short sales but that's what has to happen prior to a genuine market recovery. Those stats are typically a couple of months behind current activity, and you can really see an upswing in sales all over the Phoenix metro area.
In the age 55+ areas especially, things are really popping, and the majority of those are NOT short sales. In these cases, it's usually a situation where the owner passes away, the property is free and clear, and the surviving family is selling. I think it's called a demographic shift.
Good to see a fellow Florida area on the list. Hopefully these results will spread throughout the state real soon.
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