According to an article published by CNN Money, there will be some major price drops throughout the next couple years in the majority of the nation. Declines are expected to exceed 10 percent in 86 of the 379 largest housing markets. And 290 of the cities will experience price drops of 1 percent or more.
This is great news for me, somebody that has been semi-house hunting, but still renting. I unfortunately graduated from college at the wrong time, and came into a crazily-priced housing market in which I can’t afford anything…especially here in Northern Virginia. The townhouse I live in when I moved in was priced over $500,000, and the owner had purchased it just a few years earlier for around $300,000. I knew a housing bubble was about to burst as there is no way these prices could be sustained. Now with foreclosures on the ride, prices are coming down…and hard.
CNN Money has a list of top top 100 locations that are expected to get hit the worst, my area is number 35 with an expected 11.5% drop by Q4 of 2009. ? I’m going to make this prediction now, but I think it’s going to be a lot more than 11.5%. We’ll see in a couple of years when I refer back to this post :)? Here’s a list of the top 10:
- Stockton, CA – 25% by Q4 2008
- Palm Bay/Melbourne/Titusville, FL – 24.9% by Q4 2008
- Sarasota/Bradenton/Venice, FL- 24.8% by Q3 2008
- Reno/Sparks, NV – 22.4% by Q1 2009
- Modesto, CA – 22.3% by Q3 2008
- Detroit/Livonia/Dearborn, MI – 21.3% by Q1 2009
- Fresno, CA – 20% by Q1 2009
- Oxnard/Thousand Oaks/Ventura, CA – 19.2% by Q3 2008
- Sacramento/Arden/Arcade/Roseville, CA – 19.1% by Q4 2008
- Las Vegas/Paradise, NV – 18.7% by Q4 2008
As you can see, the west coast is going to be hit pretty hard. If you’re a potential buyer, what do you think about all this?? At one point do you think you can feel safe about actually buying?? The dates given above are rock bottom price estimates, so according to that, you should buy around that time in those areas. Do you agree?? As a home owner, have you been feeling the hit on this?? I’d especially like to hear from people that are real estate investors that got caught up in the wrong time.