OfflineI was navigating around on a web site popular with real estate agents yesterday and found that they had a top 10 list from Forbes listing its choices for the ten residential real estate markets in greatest decline based on falling property values in 2009 and other economic factors.
They used six metrics: median home price declines from their peak, numbers of new homes being built, population flows, per capital GDP, and unemployment.
The result was:
1. Miami, FL (building permits down 77 percent)
2. Tampa, FL (median home price down 32 percent)
3. Riverside, CA (unemployment up 178 percent)
4. Jacksonville, FL (median home price down 23 percent)
5. Phoenix, AZ (building permits down 83 percent)
6. (tied with #7 & #8) Los Angeles, CA (new jobs added down 8.5 percent)
7. Orlando, FL (unemployment up 254 percent)
8. Sacramento, CA (building permits down 75 percent)
9. Las Vegas, NV (median home price down 50 percent)
10. Providence, RI (unemployment up 122.95 percent)
In the list of ten cities experiencing the worst declines, Florida accounts for 40 percent while California accounts for 30 percent, showing continued concentration on the coasts.
Here is the link to the post on Forbes
http://www.forbes.com/2010/04/09/cities-top-ten-lifestyle-real-estate-un... -
http://www.forbes.com/2010/04/09/cities-top-ten-lifestyle-real-estate-un... - gives slide show with details of changes in the top 10 list.
Definitely, food for thought!!
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Phoenix and Vegas would be my choices to invest every day of the week
No shock there on Vegas and Phoenix. I can't imagine that NY isn't on the list for TAXES RISING and JOBS LEAVING. I will stay here and invest because there will be a bunch of vacant homes....Jan
A market that is declining at a rapid rate, may not be the best place to invest. If you purchase property at 60% of value, and the market is declining rapidly, in a short time your equity will be gone. If you are flipping the property, you can still turn a profit, but the end buyer will be the looser. If you plan to rent, and values are continuing to drop, rental rates will be going down also. I do not see anything happening in Phoenix to slow this down. How can we determine when this market will bottom out and start to inprove?
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