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Trulia Trends: Where Foreclosures Are Worst, How's Cali Doing, Etc.
2/13/08
Friday, February 22, 2008
4:55:00 PM EST
February Editition of Trulia Trends
Warning: PDF
Trulia does an excellent job putting the foreclosure situation in perspective by region. As they say, REO properties (which are being sold by banks) are basically the same price in the Mid-Atlantic and Southern regions as the normal existing home listings are. In the Midwest, the REO properties are essentially being dumped at 25-30% discount, so it makes sense for owners in those areas to hang on for a year or so if they can. At the same time, those homes are the cheapest in the country, so hopefully the mortgage payments are the least onerous.
By comparison, when you look at foreclosures in California, you see that in Bakersfield, REO properties are also basically the same price as regular listings. In Stockton, which is often talked about as the center of the foreclosure "crisis" they are only 3 percent less. But in LA, the difference is more like 30 percent. You could argue that the prices in Stockton are already depressed enough, but for those looking to get a bargain, the REO properties in LA and San Fran are available at a much deeper discount than in these peripheral areas. Even in San Diego, which is a very desirable location, the difference in price is just under 20 percent.
Finally, Trulia looks for markets that are showing signs of recovery. Albuquerque, Queens, Tulsa, Memphis and St Louis are the five that are called out as either being flat or up 5-10% in recent months. Memphis, St Louis and Tulsa, as cities in the Midwest, probably never experienced the kind of housing boom that you saw on the coasts. New York continues to be a hot market as stock brokers and other financiers get their annual bonuses, and Queens, Brooklyn and the Bronx are the areas where you a young professional can still get a deal compared to Manhattan. From what I understand, Albuquerque is being touted as a highly affordable retirement location, so you could see that city doing slightly better than Phoenix or Reno which are more overbuilt.
Things to think about it. Have a great weekend.
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4:55:00 PM EST
Trulia Trends: Where Foreclosures Are Worst, How's Cali Doing, Etc.
Warning: PDF
Trulia does an excellent job putting the foreclosure situation in perspective by region. As they say, REO properties (which are being sold by banks) are basically the same price in the Mid-Atlantic and Southern regions as the normal existing home listings are. In the Midwest, the REO properties are essentially being dumped at 25-30% discount, so it makes sense for owners in those areas to hang on for a year or so if they can. At the same time, those homes are the cheapest in the country, so hopefully the mortgage payments are the least onerous.
By comparison, when you look at foreclosures in California, you see that in Bakersfield, REO properties are also basically the same price as regular listings. In Stockton, which is often talked about as the center of the foreclosure "crisis" they are only 3 percent less. But in LA, the difference is more like 30 percent. You could argue that the prices in Stockton are already depressed enough, but for those looking to get a bargain, the REO properties in LA and San Fran are available at a much deeper discount than in these peripheral areas. Even in San Diego, which is a very desirable location, the difference in price is just under 20 percent.
Finally, Trulia looks for markets that are showing signs of recovery. Albuquerque, Queens, Tulsa, Memphis and St Louis are the five that are called out as either being flat or up 5-10% in recent months. Memphis, St Louis and Tulsa, as cities in the Midwest, probably never experienced the kind of housing boom that you saw on the coasts. New York continues to be a hot market as stock brokers and other financiers get their annual bonuses, and Queens, Brooklyn and the Bronx are the areas where you a young professional can still get a deal compared to Manhattan. From what I understand, Albuquerque is being touted as a highly affordable retirement location, so you could see that city doing slightly better than Phoenix or Reno which are more overbuilt.
Things to think about it. Have a great weekend.
Written by unstructuredblog Blog about this entry |
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This entry has 2 comments: (Add your own)
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Thanks for stats from. We all knew about California and especially LA area but what about Las Vegas and Miami. Read a very cool article about "Bubble Trouble" that really puts the big picture of real estate trends in perspective. You can read it at http://www.retrends.com/real_
estate_trends_articles.asp?mod e=article&articleid=58
2/22/08 8:43 PM
I guess putting 50 thousand into the house is not a great idea ! lol
How bout using flat fee mls or a for sale by owner web site.
Like
http://www.mlsflatfeefsbo.com
Its hard to do this if your not by a major city but who knows at least you'll save some money maybe not foreclose as bad.