The ‘best’ and ‘worst’ housing markets. Post 122

10 Best And 10 Worst U.S. Housing Markets

Forbes      February 26, 2009       by Matt Woolsey

The cities that are showing signs of stabilization and those that continue to unravel.

Blame overbuilding and risky loans, a gambling mentality or even the desert sun, but based on recent results from the S&P/Case-Shiller home price index, which measures metro home prices in 20 cities through December 2008, Las Vegas is the weakest market in the country. Prices are dropping quickly (down 4.81% since last month and 33% in the last year), the pace of decline is accelerating at the third-fastest rate in the nation, and based on lost equity, homeowners are out 65 months of mortgage payments.

All signals that things aren’t likely getting better any time soon.

…San Francisco’s score of 130.12 means prices are up 30.12% from 2000. It still has the potential for a further fall, given the 31% year-over-year drop.

It’s not a good thing for San Diego that prices from November 2008 to December 2008 fell 2.13%, but as prices declined by 2.29% from October to November, and 2.44% from September to October, the speed with which prices are falling is slowing.

That slowing rate of decline, also seen in places such as Denver, Washington, D.C., and Boston, helped rank those cities as some of the stronger markets in the country.

Contrast that with Minneapolis, where prices fell just 0.96% from September to October, but by December, the rate of month-to-month declines had jumped to 4.6%, an unwelcome acceleration.

Next, to rule out places in complete depression, we looked at how many months of equity homeowners have lost. Places like Detroit (-2.98%) and Cleveland (-2.07%) haven’t declined as quickly over the last month as Seattle (-3.63%) or Charlotte (-2.55%), but that’s because prices in those two Rust Belt cities are so depressed it’s difficult for them to fall any further. Detroit and Cleveland homeowners have lost 141 and 92 months of equity, respectively, whereas Seattle and Charlotte prices have only declined for the last 39 and 33 months, respectively.

That means cities like Tampa and Miami, which are notorious for overbuilt new inventory and high numbers of foreclosures, perform better on the index than they ought to, as those two factors are not tracked.

Delinquencies (are) a major problem and a sign that the Valley of the Sun won’t be bouncing back any time soon. In Phoenix, seriously delinquent loans-those that haven’t been paid in 90 days-have increased from 3.5% to 27.3% for subprime loans since this time in 2005. Adjustable-rate mortgages that are seriously delinquent have gone from less than 1% to 20.2% in the same period.

In Depth:  The Best U.S. Housing Markets

No one is making a great deal of money in real estate right now, but that doesn’t mean all cities are feeling the same amount of pain.

Best, No. 1: New York, N.Y.

Index score: 183.5

Prices were last this low: November 2004

Month-to-month drop: -1.72%

Year-over-year drop: -9.19%

Deceleration rank: No. 9

Best, No. 2: Washington, D.C.

Index score: 176.34

Prices were last this low: April 2004

Month-to-month drop:-2.18%

Year-over-year drop: -19.24%

Deceleration rank: No. 3

Best, No. 3: Charlotte, N.C.

Index score: 122.41

Prices were last this low: April 2006

Month-to-month drop: -2.55

Year-over-year drop: -7.19

Deceleration rank: No. 13

Best, No. 4: Portland, Ore.

Index score: 158.5

Prices were last this low: September 2005

Month-to-month drop: -2.53%

Year-over-year drop: -13.14%

Deceleration rank: No. 11

Best, No. 5: San Diego, Calif.

Index score: 152.16

Prices were last this low: October 2003

Month-to-month drop: -2.13%

Year-over-year drop: -24.84%

Deceleration rank: No. 1

Click here to see the full list of the best U.S. housing markets.

In Depth: The Worst U.S. Housing Markets

Worst, No. 1: Las Vegas, Nev.

Index score: 131.4%

Prices were last this low: August 2003

Month-to-month drop: -4.81%

Year-over-year drop: -32.98%

Deceleration rank: No. 18

Worst, No. 2: Phoenix, Ariz.

Index score: 123.93

Prices were last this low: September 2003

Month-to-month drop: -5.06%

Year-over-year drop: -33.96%

Deceleration rank: No. 15

Worst, No. 3: Detroit, Mich.

Index score: 80.93

Prices were last this low: April 1997

Month-to-month drop: -2.98%

Year-over-year drop: -21.66%

Deceleration rank: No. 8

Worst, No. 4: Minneapolis, Minn.

Index score: 127

Prices were last this low: April 2002

Month-to-month drop: -4.6%

Year-over-year drop: -18.45%

Deceleration rank: No. 20

Worst, No. 5: San Francisco, Calif.

Index score: 130.12

Prices were last this low: April 2002

Month-to-month drop: -3.81%

Year-over-year drop: -31.24%

Deceleration rank: No. 2

Click hereto see the full list of the Worst U.S. Housing Markets.

See entire article:;_ylt=AoYS449VYdOuhb1oVGkMNclO0tIF


Coach Mitch’s REFLECTIONS™

Don’t be put off

Each market is its own little world. A city like Detroit was “up” for a long time, just ask any worker at a car plant during the boom times. There are quite a few cities in the south and west that have good recent history, despite the current hic-cup. Government centers, like state capitals, will be doing better than most other areas because the level of employment is so high and steady.

Gloom may not be doom … for you

In the best of times there are many who suffer some financial disaster and they have limited choices. In the worst of times, there are those who understand that certain markets will provide an advantage and an opportunity.

Your MO

Great economic forces are not in our control. There are big people who make decisions that affect US and we have no input into the BIG picture. If you have recognized this reality, then you must next recognize that your responsibility is to you and yours.

This does not mean that you riot or become a thief. It means that you adjust your MO, Modus Operandi, your Method of Operations, to fit the economic circumstances.

There is always hardship

We are each of US responsible for ourselves and our family. Next, we have a responsibility to our community (tribe). Our greater community, our state, and nation also call upon US for loyalty.

Our duty

We should take part in good works, give charity, and participate civilly. A significant part of my life has been taken up in these efforts. I have always worked in the volunteer sector, I cannot pass a nun with a tambourine without donating, and I am a leader in my local political party. My American Jewish heritage teaches me that to help others is a “good deed.” I have always taken this admonition seriously – as do most of US. That is what makes America great.

We must help

When someone has had a bad turn, when they have lost a job or gotten sick, or even if they have not been responsible, certain things occur. Bills don’t get paid and the situation becomes untenable, to the point that the debtor loses assets.

This is when the property owner doesn’t pay their property taxes.

Recognize the situation

You can help by preparing yourself. You must have the good information and then, you must be able to act on that good information.

Coach Mitch’s “Ridiculously Simple System…”™ shows how to get the good info and then how to act on it.

When you find a tax delinquent in trouble, because their expectations are so low, they will often ask for or settle for very little. Coach Mitch says, – Just say, “Yes.”™ Let them move on with their lives. You will have gotten a great deal – and done a good deed.

See Coach Mitch’s “Ridiculously Simple System…”™ for details.

You’ve been warned,
BADCODE-439-6100 until midnight EST

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