I read an interesting article tonight on Forbes.com about 10 cities that are expected to have the largest drop in home values.
10. Cleveland, OH
9. Detroit, MI
8. Phoenix, AZ
7. Tampa, FL
6. Las Vegas, NV
5. Los Angeles, CA
4. San Diego, CA
3. Orlando, FL
2. Sacramento, CA
1. Riverside-San Bernardino, CA
Moody's actually conducted the study for Forbes. The model incorporates inventory levels, job growth or loss, and the availability and cost of credit based on current mortgage rates.
The study also measures the expectations of a home buyer on a market-by-market level, based on an 18-month moving average of home prices. The more sharply prices fall, the more likely buyers are going to stay out and wait for a bottom; in a quickly accelerating market, buyers are more likely to jump in, expecting future home price increases.
It is good to see Sarasota, Florida not on this list. For some positive news Sarasota MLS shows 793 homes under contract, 332 condominiums under contract, inventory levels seemed to have peaked since we are currently 6% lower than 12 month high. Properties in good condition and location with the right price see action.
Date: 2008-05-02 21:16:25