The U.S. real estate market is generally rising, with the Phoenix market still leading the way

The U.S. real estate market is generally rising, with the Phoenix market still leading the way. According to an analysis of new data by real estate research agency Zillow, the U.S. real estate market is generally...

The U.S. real estate market is generally rising, with the Phoenix market still leading the way. According to an analysis of new data by Zillow, a real estate research firm, the U.S. real estate market is generally emerging from a downward trend, but house price changes vary greatly depending on geographical location, thus validating an adage in the real estate market: location is the most important. The Wall Street Journal quoted real estate research firm Zillow's analysis of new data as saying that while real estate markets across the United States rose and fell at the same time during the housing boom and crash, markets are now emerging from the downward trend at different speeds. Single-family housing starts rose 3.2% in May from April, while building permits increased 7.9%, according to seasonally adjusted data released by the Commerce Department. Sales of existing homes in May are also a key benchmark for spring sales. Early reports suggest many markets are improving from weak levels a year ago. Zillow's analysis also shows the recovery is patchy. Buyers can be found in sought-after neighborhoods, such as those close to transportation hubs and with great public schools. But demand remains weak in other neighborhoods miles away, including those in affluent suburbs of the city or in areas that haven't been fully upgraded. Zillow tracked prices by zip code in dozens of metropolitan areas and compared prices in April to three months earlier. The company uses a proprietary model that takes into account factors such as sales and appraisals to determine the value of all homes in an area. The results show that the market's recovery is uneven, with certain areas getting a boost while neighborhoods or miles away are left out in the cold. "You can actually see the seeds of recovery starting to spread by zip code," said Zillow chief economist Stan Humphries. The company's data reflected a broad recovery in a handful of markets. About 94% of Phoenix ZIP codes and 90% of Denver ZIP codes saw an increase in property values ​​between February and April, up 5% and 6% respectively compared to the same period last year. And some areas are getting worse. Only 6% of Albany, N.Y., ZIP codes saw an increase, down from 28% a year ago. As a result, prices started to rise, but "it's not happening in every neighborhood," said Glenn Kelman, chief executive of brokerage Redfin. "It's really cherry-picking." Redfin is headquartered in Seattle and operates in 18 metropolitan areas. Mr Kelman said when neighborhoods with high-quality schools, low crime rates and attractive homes "become more affordable, you're going to see strong demand there". He said buyers wanted to get "Tiffany diamonds at a discount." The greater Phoenix area is supporting the local housing market due to the presence of new economic entities in the Southeast.