Fastest appreciating markets

Read today in a newsletter the following, which was from CNN Money:

"The fastest appreciating market was Bradenton, Florida. The average home went up 45.6 percent in over 12 months, ending March 31. Other hot Florida locations included: Sarasota - 36 percent, West Palm Beach - 35.9 percent, Ft. Lauderdale - 31.8 percent.

Las Vegas, Nevada saw appreciation of 29.4 percent and Riverside/San Bernardino, California saw 32.6 percent. Atlantic City led the Northeast with an increase of 23.2 percent.

Some affordable markets included Beaumont, Texas, where house prices fell 6.5 percent to a median price of $90,000, and Waterloo/Cedar Falls, Iowa, which saw decreases of 2.6 percent to $86,500. Other areas showing declines included Canton, Ohio (minus 4.5 percent) and Syracuse, New York (down by 2.6 percent). Median home prices in those locations were all less than $120,000."

Wonder if it’s worth buying in a market that’s already appreciating so fast.

Take a look at the last few months first. 12 months ago was a much different market in many areas. For example, the Vegas number would lead you to believe that homes are going up over 2.5% monthly, however, the current number is closer to 1% (or under).

12 months ago you might have had a 5%-10% month or a couple months with extra high appreciation. This throws off a 12 month figure. Look at the last 2-4 months if you can.

The Vegas market is no longer 29%, it is now, at current pace, around 12%. I expect other markets to tell similar tales when you look at recent numbers.

You should also look at what is actually driving the market. It is wild speculation or solid growth and other aspects?

IMG is driving the Bradenton area up, this will be a very upperclass city appealing to professional athletes.