July 5, 2009

Five Worst Housing Markets in the USA

The EXPERTS say, Don't plan on buying a house in anyone of these cities:














Reason: 5 Housing Markets That Have Further to Fall.....
1) Detroit
Housing prices fell 4.9% in Detroit in March, according to the latest reading of the Case-Shiller Index. That marked the city’s largest monthly decline since January 1991, when S&P’s backlogged data begin. Houses in Detroit are currently selling at 1995 prices – and with prices still falling so fast, it’s hard to say when the city will rejoin the 21st century.

“Detroit is Detroit because of the auto industry,” says Maitland. The whole Midwest is hurting from car companies’ woes, but Detroit is hurting the most.

2) New York City
Anyone who was hoping to see Wall Street suffer from the financial crisis can relax. New York may have avoided the nationwide implosion in home prices early on, but the city saw its largest-ever monthly decline in March, at 2.5%.

“New York may not be out of the woods,” Maitland says. “Because of what’s going on with the financial markets and the layoffs on Wall Street, New York may be one of the last places to turn around.”

3) Phoenix
Home prices in Phoenix have fallen 53% from their peak in June 2006, and the 2009 data suggest they’ve got farther to go. In March, prices in Phoenix fell 4.5%.

The Southwest has been one of the hardest-hit regions in the mortgage crisis. The region still faces a glut of recently-built homes.

“In Phoenix, you had some of the worst excesses,” in terms of overbuilding, Moody says. “The surplus of houses is so great that it could take two or three years” for prices to turn around. However, a steady influx of new residents into the region suggests the long-term prospects for the market are sound, he says.

4) Portland, Ore.
In the Northwest, median home prices are down but they remain above the national average. Portland’s prices fell 2.1% in March. Home prices in Seattle were down 2.0% for the month.

“Portland’s still going down,” says Dave McCarthy, president and chief executive of Integrated Asset Services, a real estate valuation and asset disposition and management company that collects data on the housing market.

The city “has remained pretty strong but they’re starting to feel some of the effects,” he adds.

The local labor market may be playing a role, Moody says. Portland’s unemployment rate was 11.6% in April, according to the Department of Labor. That’s well above the national average for the month (8.9%).

The Pacific Northwest bubble was among the last to burst, which could mean the market will be among the last to recover.

5) Minneapolis
Housing prices in Minneapolis fell 6.1% in March, the largest monthly decline of any metro area since data tracking began in 1987.

More than half of all March home sales in Minneapolis were due to foreclosure or short-sale activity, according to the Federal Reserve Board’s Beige Book, which gathers information on regional economic conditions. Foreclosed homes tend to drive prices down because “the bank’s best interest is to get the asset off their books” as quickly as possible, Maitland says.

8 comments:

  1. Dave BoneheadJuly 08, 2009

    Made a banner for you at www.johnlyman.net.

    ReplyDelete
  2. Honolulu isn't so great either.

    http://www.honoluluadvertiser.com/article/20090708/BREAKING01/90708075/Coldwell+holding+mega+open+house+event+in+Waikiki

    I have an idea. I am going to buy a parrot, teach it to say the phrases below endlessly, go into real estate...

    Now is the time to buy.

    Real Estate always goes up, it is a great investment.

    Buy now before prices go up.

    I can help you.

    I am on your side.

    ReplyDelete
  3. A Must Read, Part 1July 12, 2009

    10 Things Your Real Estate Broker Won't Say.....

    1. "Your open house is really just a networking party for me."
    Hire a real estate broker to sell your home, and one of the first things he'll likely suggest is hosting an open house so that potential buyers can casually check out your property on a weekend afternoon. But while open houses are promoted as a great way of finding a buyer, a National Association of Realtors study found that their success rate is a mere 2 to 4 percent.
    No matter. Holding an open house serves another important purpose -- for the broker. "It gives him a database of clients," says Sean McNeill, an independent real estate broker based in New York City who says that he doesn't like open houses, preferring to match clients with appropriate buyers. "At open houses, you get all kinds of people walking in. Some are [trying] to see how much they should sell their own places for; others just want to get a look at what's out there." All are perfect pickings for a broker looking to increase his roster of buyers and sellers. "Think about it," McNeill says. "The broker is devoting a couple hours of a weekend. He won't do that unless it helps him in a big way." But it doesn't necessarily mean that a seller should forego an open house altogether -- says McNeill, "It's still a real good way to showcase your house."

    2. "My fees are negotiable."
    Brokers like to make it sound as if their fees are engraved in stone, but that's rarely the case. During the housing bubble, for example, as the number of brokers sharply increased, so did the competition for listings -- one broker says he lowered his fee by a full percentage point just to give himself an edge. But even in the wake of the recent crash, you have a good chance of negotiating a better deal -- that same surplus of brokers is still out there competing for even fewer listings, giving you something of a leg up.
    The broker we spoke with, who asked not to be named, says that sellers should always shop around for better terms and has some suggestions for the best conditions to induce brokers to lower their fees: "If somebody's willing to commit to me for selling one place and buying another," or "If you're in a particularly desirable neighborhood with a house that will bring a lot of traffic" for an open house. And with a lot of smaller brokers, he says, "all you need to do is ask and they'll lower the commission."

    3. "Think you've had no offers? Actually, there've been several."
    Legally, the broker you hire to sell your home is obligated to tell you about all offers that come in. In reality, some do not. Perhaps he thinks the offer is insultingly low for you, but more likely, "the broker thinks it's too low for his own purposes," says McNeill. "He wants to hold out for a bigger commission." Another possibility is that there's an outside broker (or "co-broker") circling your house, and the primary broker is waiting for one of his own clients to make an offer so he can keep the full 6 percent to himself.
    "You must be clear with your broker that you want to be informed of all offers," McNeill says. "Otherwise, you may be leaving him to make decisions that you should be making." Check the listing agreement drawn up when you hire the broker; if the promise to disclose all offers isn't listed explicitly, insist that it be added.

    ReplyDelete
  4. Beware of real estate adsJuly 23, 2009

    Is this flipping ass idiot for real?


    An actual Seller's Ad on craigslist, Phoenix Board, Farm and Garden....

    1 acre Heber Arizona can be sub divided - $85000
    I own a 1 acre parcel of land in the pines in Heber Arizona.
    I have sold four other acres in the same area prior to the housing problems over the past two years for 129,000 each.
    I would be willing to sub divide the acre into 2 - 1/2 acre
    parcels and sell individually.
    The land has road access and power. It is in a beautiful
    section of Heber with $500,000+ homes on adjacent acres.

    /////////


    For those of us who live in Arizona, these bare land plots subdivided are a scam. legal, but still a scam. Endorsed and promoted by the Arizona Real Estate Department, remember they are run by x-Realtors!

    These types of lots are way overpriced in a good market.
    This one acre lot may be worth $500.00 (five hundred dollars)!

    ReplyDelete
  5. got u idiotsJuly 25, 2009

    Damn straight the housing bubble and collapse is funny as hell, I think I'll go out and buy up your whole block today. It's like playing monopoly. I mean really, what kind of moron buys when prices keep going up, up and away? That's right, I waited ten years in my dinky little apartment, scrimping and saving while you all were keeping up with the Jones' I was building my credit. Yeah it is fucking hilarious to me. Didn't your daddy teach you anything ?

    ReplyDelete
  6. more bullshit RE AdsJuly 29, 2009

    Here is another IDIOT in la la land posting their OVERPRICED property on Arizona's craigslist Farm and Garden Board:

    Are these people for real?
    Acreage like this may be worth in today's market $1,000.00 per acre (one thousand).
    The lease rights are worth nothing. If you want them you sign a contract with appropriate agency.

    Ad-
    Cattle Ranch, 3 + acres Deeded & 7 Sections Leased Grazing - $99995 (Winkleman, Az)
    There is a well, septic tank and electricity...
    These 2 parcels are deeded properties approximately 3+ acres total
    Property identification #'s (300-53-00409 & 300-53-00300)
    State of Arizona Grazing No. 05-95004 affects the following property
    The grazing lands are sections 20,21,24,25,28,29 and
    The EH;NHNW & SENW Of Section 23
    The NHNE; SENE; NESE of Section 26 All in the the Township 7 South, Range 16 East
    Lot 1 thru 4; EHWH; EH of Section 30
    Lots 1 thru 4 NHSH; NH of Section 32
    NH of Section 33, All in Township 7, Range 17 East

    ReplyDelete
  7. Realtors = six percent GREED!

    ReplyDelete
  8. “Wow” you are a genius for sure what great ways to get ranked high and obtain good traffic flow from your article. Thank you for sharing your information it was very good reading for sure. I am looking forward to any more of your articles you produce in the near future.
    studied home

    ReplyDelete

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