Image via openarmshouse.org

Visalia’s housing market fell from a No. 2 rank in the fall to No. 41. on Realtor.com’s Emerging Housing Markets Index.

Analysts with Realtor.com and the Wall Street Journal assembled the list of emerging housing markets comparing the 300 largest metros in the U.S. and ranking them on low cost of living, steady real estate indicators and economic opportunities.

Many western markets, including Colorado Springs, Colorado, and Yuma, Arizona, were replaced by Midwest markets. Fort Wayne, Indiana, replaced Visalia at No. 2.

While Visalia’s unemployment rate of 7.4% was the second highest for the fall ranking — beating out only Yuma’s 14.7% — study authors attributed Visalia’s proximity to national parks, rivers and beaches as a contributing factor in earning the No. 2 spot.

In Tulare County, housing prices have remained strong. National Association of Realtors data show of the 12 counties in the Central Valley, Tulare County has had the highest year-over-year increase in prices. The median home price in Tulare County was $353,500 in December, 10.5% higher than the same time in 2021.

After clawing back from unemployment levels nearing 13% in March, 2021, those numbers have risen back slightly from lows near 6.5% in May 2022 to finish the year at 8.2% in December. January unemployment numbers are expected Friday.

Visalia has been a fixture high on the list, ranking No. 10 in summer 2022 and No. 27 in spring 2022.