Open-House Blog: Hot Spots
Where Homes Are in Demand

Here's a look at what's new in real-estate markets across the U.S. from around the Web. (Some links may require registration or subscriptions.)

Oil profits buoy Houston home sales

In many parts of the country, home sellers are competing against each other for a dwindling pool of buyers. But in Houston's River Oaks neighborhood, an affluent residential area east of downtown where houses are priced in the millions, it's the buyers who have to do the hustling, according to an article published by Bloomberg.com. Spurring sales is wealth made in the booming energy sector, the Web site says. For the first quarter of this year, home sales in River Oaks jumped 28% from the same period in 2005, and the median sales price rose from $940,000 to $1.2 million. River Oaks properties are now selling within nine months, compared with 12 months to sell a year ago, the article quotes a local real-estate professional as saying. When taking all of its neighborhoods into account, Houston's median home price is $147,000, the article says -- a far cry from the $8 million asking price for what Bloomberg.com says is currently the largest home on the market there: a 22,364-square-foot mansion built by a Saudi prince.

Americans buy second homes overseas

Aided by favorable interest rates and home financing, Americans are taking their passion for real estate across the border, says an article published by the Toronto Star. U.S. vacation-home buyers are fueling residential markets in places like Mexico's Baja California, London and British Columbia, the Web site says, raising concern among some economists about a global housing bubble. As much as 10% of homebuyers in Canada's Victoria and Vancouver are from the U.S., the article says. Both these cities have experienced double-digit price increases in the past few years, the paper reports. Helping to fuel Americans' spread abroad is the growing globalization of housing markets as buyers have access to more properties via the Internet, the article says. For some U.S. home buyers, real-estate purchases abroad are a relative steal. The article quotes one American, who, using some of the equity from his $1.2 million Santa Barbara, Calif., home, spent $384,000 for both a home and a condo in Canada.

Neighbor of Aspen and Vail is on the rise

Home prices are going up -- way up -- in Basalt, Colo., says Vail Daily. In this town, which is located close to skiing meccas Aspen (16 miles away) and Vail (40 miles distant), the median price for a single-family home shot above the $1 million mark in May, the paper says. In mid May, the median selling price in Basalt was $695,000 the article reports. This spike in the local market comes after three years of very flat and slow home sales, the paper quotes a local real-estate agent as saying. In this seller's market, any residential property up for sale for less than $500,000 gets at least one offer in the same day the home is listed, the article says.

Renters call the shots in Palm Beach County

In Florida's Palm Beach County, it's a renter's dream, but a property-owner's nightmare. Thanks to slowing home sales, buyers testing out the market, and a rising inventory of houses for sale, renting has become a popular option for area home buyers, according to an article published by PalmBeachPost.com. Renters are finding deals as real-estate speculators find it harder to flip their properties for a quick profit and are forced to lease them out instead, the paper says. For some renters, the money needed to lease a brand-new dream home is less than half of what they would pay to purchase a comparable home, according to the Web site. For instance, in West Palm Beach, the cost of owning a $400,000 town house is about $3,000 a month, while the price to rent one is approximately $1,500 monthly.

Fewer sales, more leases in Manhattan

Meanwhile, in New York's Manhattan, a slowing housing market is translating into a boon for landlords, says The New York Times. Skittish buyers aren't purchasing properties and are renting instead, causing the inventory of homes on the market to skyrocket 67% in May from the year before, the paper says. In response to the demand, landlords are raising rents, the article reports. But while sales are generally slowing in the city, homes priced in the millions are in demand, the paper quotes one local real-estate executive as saying. This year, sales of residential properties above $5 million have gone up, thanks to Wall Street bonuses, one upper-level Manhattan real-estate professional is quoted as saying.

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