The media of late have speculated that the home price peak hit this past summer. In fact, data from the National Association of Realtors shows that the average price of an existing home across the nation peaked in August and has been lower every month since.
Of course, it takes more than 4 months of data to even hint at the bursting of a bubble that has been years in the making. NAR says that nationwide home prices were up 9.5% in 2005. Interest rates remain attractively low, economic prospects are good and boomers are hitting their peak earning years. Real estate will remain an attractive investment for many regions of the country, particularly for the 50 popular spots tracked by RetireHomeSmart.com.
The average price of a RetireHomeSmart 50 home gained 21% since January 2005, more than double the gain for the average home nationwide. The 50 cities in the RetireHomeSmart index have a strong appeal for the vacation home, investment home and retirement home buyer.
Comparing the average home price in 2005 with that for 2004, Gulf Shores, AL leads the pack with a 64% increase. We are not sure what is happening here but those rebuilding from the hurricane damage of the last couple of years are surely contributing to this outsized increase. Increases in Reno, NV (54%), Palm Springs, CA (42%) and Sedona, AZ (34%) indicate that the migration to the desert southwest is a long way from being over. The 41% increase in Kailua, Oahu, HI just put that heavenly hideway in Hawaii that much further out of reach.
On the other end of the spectrum home prices in Hot Springs Village, AR lost 8% from 2004 and Pinehurst, NC were flat from '04 to '05.
Check RetireHomeSmart.com for home price data for all 50 cities plus more information and tools to help you decide where to make that vacation or investment home purchase.
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