Bad Markets for Foreclosures

Where NOT to buy right now

California’s Central Valley- The long road between Sacramento and Bakersfield is a dangerous place to buy right now, as 5 of the cities from the “Worst cities to Buy” list are in this area. In the last few years home prices rose by 60% because homebuilders that ran out of room to build in the bigger cities came to Central Valley to build. The problem is, is that the workers in Central Valley are mostly agricultural, and have some of the lowest incomes in California. The unemployment rate in this area of the state is high, and when coupled with higher home prices, the housing market suffers.

Cities in this region-Bakersfield, Fresno, Merced, Sacramento, Stockard

Southwest Florida-Home prices in this area are some of the highest in the country-a typical house sells for $500,000. The problem lies in the fact that a high number of people in this region are retirees, and cannot afford the high home prices. As a result you have a flooded market, and nobody buying.

Cities in this area- Fort Myers, Naples, Punta Gorda, Sarasota

The Jersey Shore- One of the most popular vacation destinations in the United States, real estate in this area can be pricey. The Jersey Shore’s problems began with rising interest rates-once rates started to climb, many homeowners needed to get out of their 2^nd mortgage. Like Southwest Florida, there are plenty of homes on the market-but no one to buy.

Cities in this area- Atlantic City and Ocean City

Phoenix, Arizona- Phoenix is also suffering from the number of homes on the market. Over the past few years, investors and speculators had been buying many of the new homes, and now, along with builders, are all trying to sell their homes. Prices in some areas of Phoenix have dropped almost $100,000 because of the number of houses currently on the market.

California’s Inland Empire- The housing market in the inland empire experienced a boom over the past few years as growth in the housing and construction industry created more jobs. However, now that the real estate industry has slowed, these people are losing their jobs, and losing their homes.

Cities in this area-Riverside and San Bernardino counties.