Realtor.com's August "Hotness Index" is showing better signs for the battered metros of the Great Recession.
MarketWatch reporter Andrea Riquier spoke with Realtor.com Chief Economist Jonathan Smoke for some details on these markets:
There’s another signal that outsize demand isn’t inflating a bubble this time around, Smoke said. Beyond cyclical job losses, a major factor that weighs on local housing markets is when the population shrinks over a long period of time, like in Detroit. But places like Columbus, which had been losing population for years, are re-appearing on Realtor.com’s index of hottest metros. “They’re not losing young people now,” he said.
In August, Columbus hit number-seven on the hotness list. Not far behind it, at number-nine, was Detroit. In fact, several other metros that have struggled, from Harrisburg, Pennsylvania, to Central Falls, Rhode Island, are all improving in terms of “hotness” compared to a year ago, Smoke said.