Can Moving Help Homeowners?
The financial crisis of the housing market created a huge challenge for buyers. Persistent buyers are finding themselves in a situation where now, there are not enough houses on the market. Many cities have been affected by an inventory shortage. This is attributed to a lack of sufficient new construction and increasingly expensive labor and materials.
Many current homeowners have become reluctant to move, especially as risk aversion set in after the crisis. Whatever the reason homeowners have chosen to stay in place, it may not be best in terms of home price appreciation. A study performed by Lendingtree analyzed fifty cities across the United States, and the results are quite interesting. Cities with shorter housing tenure have greater price appreciation.
Results: The Top Ten & The Bottom Ten
Metrics showed that the top ten cities had an average homeowner occupancy of 7.46 years. This was linked to an average three-year home price appreciation of 12%. However, the bottom ten, with an average tenure of 6.63 years, averaged a price appreciation of 30%! The study indicates that a higher housing turnover drives prices upwards, while faster price appreciation could entice more homeowners to sell.
Weather seemed to be a key factor in cities with both the longest and shortest tenure. The top three places with the longest occupancy include Pittsburgh, New York, and Buffalo while the shortest include Las Vegas, Phoenix, and Austin.
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