Does hot temperatures make for a hot market?

Hot (temperature) areas tend to be destination areas as well so they can be cyclical when it comes to the values of properties. I live in Utah and we have a city in Southwestern Utah that is relatively warm all year long. Cities like this, Las Vegas, Phoenix, and other warm temperature cities can tend to fluctuate. The other thing that I have noticed the past few years is how that same fluctuation can be more dramatic than cities that have different seasons through out the year.
Home Prices in Las Vegas and Phoenix 3 years ago were skyrocketing compared to most cities in the nation. These destination or vacation type cities were seeing growth that most cities were not seeing. However, when the market turned around the past few years, these same markets are among some of the cities who have been hit the hardest with falling prices. As an investor (in real estate, or other types of investments) the key to making the most profit is buying when the market prices are down. Now the real fun comes in when trying to determine when prices have hit “rock bottom”. So investing in these types of areas can be very profitable, but don’t expect home run returns. The key to solid investing in any type of market is finding and maintaining consistent growth. Real estate is a long term secure way to achieve financial freedom. Be patient, and work hard.