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Th e M Rep o RT | 33 O r i g i nat i O n s e r v i c i n g a na ly t i c s s e c O n da r y m a r k e t ORIGINATION growing Workforce Propelling Housing in rust Belt EducatEd workErs could lEad a rEsurgEncE. OHIO // As the housing market continues to mend, analysts find the young-adult sector of the market is lagging. Some feel the lack of young first-time buyers is the main component holding the housing market back. However, this may not be the case every- where. A burgeoning young, knowledge-based workforce is contributing to housing and over- all economic growth in Pittsburgh and Cleveland, according to the latest Home Value Forecast from Pro Teck Valuation Services. Pittsburgh and Cleveland rank third and eighth on a list of met- ros with the highest percentage of employed individuals aged 25 to 34 with graduate or profes- sional degrees, according to a recent report from Cleveland State University's Center for Population Dynamics. These two cities are following in the footsteps of Boston, which notably transformed from a labor-based to a knowledge-based economy in the 1980s, according to the center. "What metro is the 'next Boston'? Pittsburgh is a likely candidate," the center stated in its report. This transformation to a knowledge-based labor force, spe- cifically focused on technology, has allowed Pittsburgh to bypass the worst of the housing crash, according to Pro Teck. Cleveland is a few steps behind in its transformation, but it is experiencing growth in knowledge-based jobs. "[I]f you want to act, you go to Hollywood. If you want to practice cardiac care or make medical devices, you come to Cleveland," the Center for Population Dynamics researchers stated. Currently, Cleveland homes remain 30 percent below its pre-crisis highs, although "we are seeing Cleveland home prices on the rise as their relatively new knowledge-based economy takes hold," according to Tom O'Grady, CEO of Pro Teck Valuation Services. "With today's youth look- ing for work/life balance while struggling to pay off student debt and other obligations, it's easy to see why Pittsburgh, Cleveland, and other Rust Belt cities could see a renaissance in the years to come," O'Grady added. In addition to its focus on the transforming cities of Pittsburgh and Cleveland, Pro Teck ranked the housing markets' top 200 core-based statistical areas based on home sales, home listings, prices, inventory, days on market, sold-to-list price ratio, and foreclo- sures and REOs. The top 10 markets in August span the country with rep- resentation from the West, Northwest, and Southwest. The top five markets include Portland- Vancouver, Oregon-Washington; Indianapolis-Carmel-Anderson, Indiana; San Antonio-New Braunfels, Texas; Seattle-Bellevue, Washington; and Omaha-Council Bluffs, Nebraska. california Forecast: rising sales, Flattening Prices a rEcovEry from thE dEclinEs of 2014 may bE on thE horizon. CALIFORNIA // Home sales in California are expected to rebound in 2015 following a step backward this year, according to a forecast from the state's Realtor group. In its 2015 housing market fore- cast, the California Association of Realtors (CAR) calls for existing- home sales in the state to reach 402,500 next year, an increase of 5.8 percent from 2014's projected sales figure of 380,500. Even with the increase, home sales are still expected to fall short of last year's total of 414,300, demonstrating how much California's market has slowed down in 2014. "Stringent underwriting guidelines and double-digit home price increases over the past two years have significantly ORIGINATION LocaL Edition