Hot off the press! Despite the housing market slowdown, 5 major markets in the USA have managed to gain in value. The changes noted below are in the August price from a year prior for Single Family homes.
Top 5 Cities Where Prices Rose:
- Seattle – 5.7% increase
- Charlotte – 5.6% increase
- Portland – 2.8% increase
- Atlanta – 0.8% increase
- Dallas - 0.5% increase
Top 10 Cities Where Prices Fell:
- Tampa – 10.1% decline
- Detroit – 9.3% decline
- San Diego – 8.3% decline
- Phoenix – 8.0% decline
- Miami - 7.8% decline
- Las Vegas – 7.6% decline
- Washington D.C. – 7.2% decline
- Los Angeles – 7.2% decline
- San Francisco – 4.2% decline
- Cleveland – 4.1% decline
Source: The Wall Street Journal, Rex Nutting, and S&P Case-Shiller Index (10/31/07)
The cities in the Manufacturing Belt (poor, poor Michigan) are suffering. People are leaving that area in droves. With the cold weather, a struggling auto-industry and high unemployment rates, Michigan is a prime example of a GET OUT state. Detroit alone has lost half it’s population over the last 30 years! The unemployment rate in Detroit is 14%! Now THAT is a city that is going to have a tough time recovering from the housing slowdown we are experiencing. The good news is, Arizona is a COME TO state. Phoenix in particular. Phoenix has an unemployment rate at a steady 4.7%. Phoenix has jobs, sunshine and people want to move here.
Ideally, you’ll take advantage of the low housing prices and make a wise investment. After all, when you buy low and sell high – you make your profit buying, you only realize your profit when you sell. Study that list of the Top 10 declining markets. Imagine 5 years down the road. Do people like to vacation there? Are there jobs? Is it warm? Is there a University? Would you like to own a second home or a vacation home? Why not buy something, rent it out, and have a positive cashflow and a new asset to add to your portfolio? Why not skip the timeshare and buy a vacation home? Do you know 5 families that would share in such an investment property?
Just be sure it is in a COME TO state so you aren’t left jobless and out in the cold.
January 2, 2008 at 1:26 am
[...] one of the first markets to rebound considering our weather, jobs and popularity. See related post here. It can be confusing out there…for more on the differences between REO/bank/lender/corporate [...]