The study’s authors said Phoenix’s ranking might surprise people, given the market’s high volume of distressed properties, but the high foreclosure rate might help the city rebound faster than other U.S. metro areas.
“Regions that have pushed foreclosures through the pipeline quickly should see demand for new homes earlier than those that have allowed their backlog to grow,” the report said.
While the list’s third-place finisher, San Diego, is located in the Southern California region that has seen high foreclosure rates, the second-place city, Washington, D.C., has been an all-around high performing market this year.
A recent Core Logic index showed Washington, D.C., was the only metro area to experience year-over-year house price increases, and while this trend has been confirmed by Zillow, National Association of Realtors and Clear Capital reports. The nation’s capital was named Parenting Magazine’s 2011 Best City for Families and a top location for tech jobs by Modis.
Last June, 7.6 percent of total Phoenix home sales were new constructions, down from 12.4 percent a year before, according to DataQuick.
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