Ithaca, NY Named On LMI “Hot List”

Ithaca NY High Property Value 2016 LMI Score 1 and a half

According to the National Association of Home Builders / First American Leading Markets Index, Ithaca, NY is on the list of major metros on the LMI, with a score of 1.68–or 68 percent better than its last normal market level. When an index value is above one it means that a market has grown beyond its previous normal level of economic activity.

The index’s nationwide score went up almost a full perecent point at .98, meaning that based on current permit, price and employment data, the nationwide average is running at 98 percent of normal economic and housing activity. Meanwhile, 9×1% of markets have shown an improvement year over year. Combined with Zillow’s High Home Value Index Ithaca is shaping up to be some hot real estate with a high ROI property investment projection.

How Accurate Is LMI?

The LMI examines metro areas to identify those that are now approaching and exceeding their previous normal levels of economic and housing activity. The way it works is this:

  • Approximately 340 metro areas are scored by taking their average permit, price and employment levels for the past 12 months and dividing each by their annual average over the last period of normal growth.
  • For permits and employment, both the 12-month average and the annual average during the last period of normal growth are also adjusted for the underlying population count.
  • For single-family permits and home prices, 2000-2003 is used as the last normal period, and for employment, 2007 is the base comparison.
  • The three components are then averaged to provide an overall score for each market; a national score is calculated based on national measures of the three metrics.
  • Generally speaking, LMI has been a fair metric to depend on to gauge real estate value in a given area.

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