"Long Island leads Home Value Forecast's ranking as the hottest real estate market in the nation in our January Home Value Forecast," said Tom O'Grady, CEO of Pro Teck Valuation Services.
"Many factors account for Long Island's strong market, including foreclosures making up an inconsequential 2.18 percent of sales and available housing inventory at only 3.63 months," said O'Grady.
Pro Teck's HVF uses leading real estate market indicators to determine its rankings, such as sales/listing activity, prices, months of remaining inventory (MRI), days on market (DOM), sold-to-list price ratio, foreclosure, and REO activity.
California ranked particularly well last month, with 6 of the 10 best markets residing in the Golden State.
"In our January HVF top ten, California is again well represented ... In particular, the Los Angeles market has seen a major shift, with sales prices up over 24 percent from the last rolling quarter," O'Grady added.
Snaring the perhaps dubious honor of worst market in the nation was Jacksonville, Florida, a region overwhelmingly rife with foreclosures. Compared with Long Island’s 3 percent of sales as foreclosures, Jacksonville currently has 81.15 percent of its sales as foreclosures.
"Looking at the five year forecast, Jacksonville's prices are not expected to get anywhere near its 2007 peak. Foreclosures will continue to hamper the market from returning to true market fundamentals for the foreseeable future," O’Grady said.