Housing Markets To Avoid

Little by little the real estate market is beginning to recover.  Certain markets throughout the country are increasing in sells while prices gradually increase.  Despite this, there are still several regions that are struggling and will continue to fall for some time.  Here are some housing markets you do not want to buy in.

The first market is Detroit as they have seen prices fall 4.9% in March alone.  This was easily the largest monthly decline since all the way back in 1991.  Right now you can buy a home in Detroit for the same prices they were selling at in 1995.  The sad part is houses continue to drop at an incredible rate making it more than difficult to determine when it will begin recovering.

The next market to avoid looking into is New York City.  In March this city suffered its largest monthly decline of 2.5% and there are no signs of it letting up anytime soon.  Wall Street does not help anything as it is predicted this will be one of the last markets to get back on the right track.

The third market on the list to avoid buying at is Phoenix.  While peaking in June 2006, prices have fallen a drastic 53% since and fell 4.5% just in March alone.  Because of the amount of homes in this region and the overbuilding that took place, it could be another two to three years before prices turn around in Phoenix.

Moving on to the fourth market, which is Portland, Oregon, things are not quite as gloomy as the rest of the country.  Although prices are above the national average, they are still dropping with a 2.1% decrease in March.  Despite house prices dropping at a slow rate, the unemployment rate was at 11.6% in April.  This is one reason for the housing market dropping as well.

The last housing market you do not want to buy into is Minneapolis.  This city felt the effects the most with the largest monthly decline of any metro area since 1987 with a 6.1% fall in March.  More than half of the home sales were due to foreclosure or short-sale activity and things continue to look bleak.  Foreclosed homes only drive prices down and with the large amount of foreclosures, things are not looking any better for the future.

While the economy is little by little picking up the pieces and moving on, there are still a number of horrendous statistics within the real estate market.  If you are looking to buy a home, keep the facts in this article in mind.