While home price appreciation is faltering in some of the nation's most well-known cities, there are other, somewhat lesser known markets continuing to post strong appreciation, according to both the Case Shiller and ATTOM data.
"Phoenix saw an increase in its YOY price change to 6.3 percent and retained its leading position," noted Murphy with the Case-Shiller index. "Meanwhile, the Southeast region included three of the top four cities. Charlotte, Tampa, and Atlanta all recorded solid YOY performance with price changes of 4.5 percent, 4.3 percent, and 4.0 percent, respectively."
Bruce McNeilage, co-founder and CEO of Kinloch Partners, said he's focusing his build-to-rent developments in four Southeast markets: Nashville, Tennessee; Atlanta, Georgia; Raleigh, North Carolina; and Greenville Spartanburg and Columbia in South Carolina.
"We feel all the growth is in the Southeast," said McNeilage, pointing to the combination of low taxes, high quality schools, and jobs. "The biggest thing is corporate relocations bringing more jobs, and the more jobs, the more housing you need."
The ATTOM data shows a decline in median home prices in Atlanta, counter to the Case-Shiller index, but it does align with the Case-Shiller data for Phoenix, Charlotte and Tampa, showing 4 to 6 percent increases in all three of those cities. Additionally, the ATTOM data shows double-digit home price growth in some Mountain West markets, including Boise (up 13.0 percent), Salt Lake City (up 12.1 percent), and Spokane (up 10.6 percent) along with some Rust Belt markets, including Madison, Wisconsin (up 12.4 percent), St. Louis (up 11.8 percent) and Dayton, Ohio (up 10.6 percent).
"We have bought 12 houses in Dayton in the past year," said Scott Stuber, a Denver, Colorado resident who has been investing in real estate with his husband since 2013. "We've been purchasing properties on Auction.com, private estates, foreclosures. ... What we've been doing is buying properties that are distressed, well under market value ... now we've been more holding and renting."
Stuber said the couple's investment company typically spends around $10,000 to $12,000 on renovations, which can sometimes be more than the property's purchase price. Despite the extensive rehab, Stuber said his company typically rents out the rehabbed homes — two-bed, one-bath "Servicemen Bungalows" — for an affordable $700 to $800 a month.