We Didn't Make The Cut

I'm not sad to say... Cleveland didn't make the cut for the ten worst housing markets in America. Cleveland has had a lot of bad press over the last year as with many cities regarding the high rate of foreclosures and housing market declines. Not this time. I blame our lack of list bragging to the fact that we're already affordable.

Yes, property here has seen a drop in value but compared to the rest of the country, our real estate is still realistic. There aren't many large metropolitan cities that offer affordable housing, low cost of living, four beautiful seasons, a fresh water ocean as a back yard, and a 20 minute commute on simple highways.

Due to overbuilding, foreclosures and excessive inventory, these cities face the fastest drop in home values. So who made the Forbes list?

10. Atlanta, Georgia - With condo overbuilding to blame and the high rate of foreclosures especially in the poorer areas such as Fulton, Atlanta's home prices are down 7.1% from last year.




9. Detroit, Michigan - While almost at their lowest available prices, Detroit has seen a decline due to risky loans, local economy problems and the subprime mortgage mess. (Thankfully it's pretty much a thing of the past.) Detroit is down 7.7% from last year.


8. Jacksonville, Florida - Properties for sale are being reduced in large numbers as Jacksonville has seen their value decline 8.7% since last year. Luckily their prices weren't spiked to begin with like other popular Florida cities or it could have been worse.


7. Phoenix, Arizona - Where there's land there's contractors... Phoenix has just baboomed with new housing recently. Apparently there's a theory here that somehow got squashed. Down 9.5% from last year and one of the cities expected to hit double digits soon.


6. Miami, Florida - A whopping 80,000 homes for sale. I'm thankful I don't have to show them all... Miami has seen every market eyeball. Increased prices to downward spiral. Miami is down 10.6%. I want to know where the 80,000 people are going...




5. Los Angeles, California - It's a large city, but Southern California has been struck by the recent love bug. The love of poor credit = million dollar home. Who needs equity when you have a pool?? There are over 100,000 homes on the market as I type. Los Angeles has declined 10.7%.


4. Tampa, Florida - Back to the East Coast we go. The problems on the coast are largely due to speculation and price growth. More, More, More....pop. Southern Florida is seeing a widespread drop and Tampa is down 11.7%.




3. San Diego, Califorclosurecation - Take a ride with me back to the West Coast. Demand and prices are just not what they used to be. Sellers are starting to realize this by slashing prices to unload. Sandy Ego is down 17.1%.



2. Las Vegas, Naiveada - I'd like to buy a vowel Pat. I'd also like to put $50 on that ranch. Las Vegas has seen a heavy drop due to speculation and that ever-so-friendly term, boom. Inventory is up 30% and prices down 17.2%.





1. Sacramento, California - Drum roll please, Chad Smith. The Central Valley market again, overbuilt and babooming a few years ago. Due to the obvious foreclosure problem and reset mortgages, Sacramento is down 18.5%.



I can't stress enough to the naysayers and real estate tomato throwers that this is the time to purchase property. Like any long term investment, you need to stay in it long term. (I love repeating and defining an already apparent phrase.) Real estate is still the single most valuable and rewarding investment to make. These families in foreclosure need a place to go. If you can and plan on living in your new home 5+ years and if you can afford rental property, do it.