2006: U.S. Cities With Overvalued Real Estate And Home Prices
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Buying a home is a big-time real estate investment and has to be done with great caution. Knowing where not to buy a house is just as important as the DOS and don’ts of buying a home.
Of the many top-ten lists on CNNMoney.com, it’s the top ten cities overvalued in America, where it is better not to buy a house for the next two years or so. The report notes that, from a variety of reasons for the unfavorable market conditions.
Five cities in California – Bakersfield, Fresno, Merced, Stockton and Sacramento, among the ten cities, the least the possibility of home price appreciation. Home prices have reached a new high (almost 60%) in these areas over the past two years. With an economy driven by agriculture and relatively higher unemployment in this area, the real estate market is expected to slump in the region.
Although the three cities in Florida have recommended that real estate purchases, the report also identifies four others in the southwest of Florida, under the bottom of the list. With home prices here are expected to fall very soon, cities such as Fort Myers, Naples, Punta Gorda and Sarasota are those who can best do to for a year or so’s time, while buying an apartment or condominium.
Market prices include a decrease in the Jersey Shore (New Jersey) area, in which a radical boom in the last two quarters. Although home prices in the third quarter, again from the slight decline in the second quarter, the bubble will soon burst, and the overpriced market is expected to stabilize. The popular seaside resort towns of New Jersey, Atlantic City and Ocean City are expected under the unfavorable list.
In Phoenix, Arizona, a hot favorite among investors in the past year, sliding home prices may be unavoidable occurrence in the next 12 months. With home prices falling by more than 100,000 U.S. dollars in some neighborhoods and investors try to sell their property, it is safer to wait for a year or longer before you here.
Economists at Moody’s Economy.com also predict a sharp drop in Riverside and San Bernardino counties, California’s Inland Empire.
The bottom ten cities that are likely to see huge drops in median home prices in the coming year, Stockton (the top of the list with a projected decline of 9.7%), Merced, Reno / Sparks, Fresno, Vallejo / Fairfield , Las Vegas, Bakersfield, Sacramento, Washington, DC and Tucson.
Given these fluctuating real estate market conditions, there should be a great caution when investing in real estate. It is useful to the expert advice of the real estate agent can advise you on your next purchase at home, as the agents often have access to the most up-to-date real estate data and neighborhood pricing trends.
