As housing reignites, even bust towns are booming again

The poster children of the housing bust are back.

Last week, released its August “Hotness Index,” ranking metro areas on how many days a listing in that area stays on the market, as well as how many web page views it receives.

Studding August’s top ten are names familiar from the housing bubble and the municipal distress that resulted when it burst: Vallejo and Stockton, two California cities that filed for Chapter 9 bankruptcy, as well as Modesto, Sacramento, and Fresno, which had hard times of their own.

Rank Market Median days on market
1 Vallejo-Fairfield, CA 37
2 Dallas-Fort Worth-Arlington, TX 41
3 Denver-Aurora-Lakewood, CO 36
4 San Francisco-Oakland-Hayward, CA 33
5 Stockton-Lodi, CA 38
6 San Diego-Carlsbad, CA 43
7 Columbus, OH 46
8 Waco, TX 47
9 Detroit-Warren-Dearborn, MI 46
10 Sacramento-Roseville-Arden-Arcade, CA 45
11 Fort Wayne, IN 48
12 Yuba City, CA 47
13 Modesto, CA 40
14 San Jose-Sunnyvale-Santa Clara, CA 33
15 Fresno, CA 47
16 Colorado Springs, CO 44
17 Santa Cruz-Watsonville, CA 48
18 Kennewick-Richland, WA 40
19 Santa Rosa, CA 51
20 Nashville-Davidson-Murfreesboro-Franklin, TN 39

La Honda has been hot lately with a 510 sq. ft. place at over 500k going pending in a week. Also, a place priced at 1.1 million just went pending and all the stuff with bad foundations which has been sitting forever - except one - recently went pending.

There is nothing for sale in Stockton that makes any sense to flip…For some reason the banks aren’t foreclosing…no distressed product available. .Flippers are being squeeed by high buy prices and low sell prices, forced by low FHA appraisals…Flippers beware!!! Buyers will pay any price due to low inventory but the FHA appraisers wont allow unfettered lending…means a dead market. …Buy and hold seems to be the only strategy these days…renters are not limited by FHA or anyone else…rents will continue to skyrocket, fueled by inflationary min wage increases…

Lots of 4-plexes for sale in Stockton. 7 or even 8 caps. Factor in the 50% rise in min wage in the next 5 years, that’s gonna be huuuuge return.

Is mortgage default still a big issue in Stockton? Maybe there are very defaults left for foreclosure.

Seems a smart strategy to buy the rehabs from flippers though, FHA is helping buyers to buy renovated homes at discount

Might be smart to low ball flippers…All cash, quick close…It comes down to the cap rate. …

The problem with Stockton is the renter pool is poor quality, hard to find renters with good credit and steady jobs…I would rather invest long term in the SAC MSA

Yeah, Sac is better with government jobs. Government job is recession proof.