Of the states with at least a thousand new home closings last year, only five registered more closed deals than they did in 2009, according to new research from Housing Intelligence.
But mortgage and housing professionals might be surprised at which states topped the list. In the 'pre-bust' days the market leaders might have been California, Nevada, Arizona or maybe even Florida. But now that new home sales are struggling in those markets as they compete with distressed properties, might the new leaders include the Carolinas? Perhaps Texas? Maybe Georgia?
Wrong. It's Hawaii, which reported a 26% jump in volume last year as compared to the year before, according to HI, the independent research arm of the Hanley-Wood publishing company.
The next two on the top five list are big surprises, too. They are North Dakota and Wyoming, which reported 21% and 11% gains in new home closing, respectively. And they were followed by Washington, D.C., which saw new home deals jump 10%, and Delaware, which netted a 2% gain.
The tie that binds these markets? The top four all have unemployment rates that are significantly lower than the national average, says HI. "It's certainly no surprise that states with healthier labor markets have healthier housing markets," the company says in its weekly Key Indicator Alert, "but it underscores the vital need for better job growth elsewhere across the nation."
