Some markets are still doing well, even during housing slump
When you listen to the news or skim the newspapers, it seems as if home sales are down, and prices, too, in every city in the United States.
But when you look a bit closer, you’ll see that the housing markets in some cities and towns are actually not only holding their own, but doing well, too.
The editors at Forbes have compiled their own list of the country’s strongest housing markets. If you’re fortunate enough to live in one of these markets, count your blessings. Your home has probably either appreciated or at least held its value during the nation’s real estate slump.
Municipalities on Forbes’ list include Little Rock, Ark.; McAllen, Texas; Syracuse, N.Y.; Buffalo, N.Y.; Pittsburgh; and El Paso, Texas.
These towns all have one thing in common: None of them saw housing prices skyrocket even during the height of the country’s housing boom. Because they didn’t see the big upswing in housing prices, they haven’t seen much of a downturn, either. They’ve been stable markets. And suddenly, as housing prices crash in formerly red-hot markets like Las Vegas, stable has become desirable.
In markets across California, Florida and Nevada, housing prices rose far too high far too quickly. The housing slump that has followed was inevitable, and anyone watching these markets should have expected it. I mean, how high could housing prices realistically go in these once sizzling markets? It was already getting tough for average buyers to afford a nice home in these markets. If the prices would have went much higher, only the rich could have afforded to purchase a home.
The resulting housing correction, of course, has been extremely painful for many homeowners. Unfortunately, that pain, it seems, will last throughout most of this year. Real estate analysts and other economists don’t expect the housing industry to really rebound until very late this year and into 2010.
The federal government, at least, has taken some actions to help stem the rising swell of foreclosures sweeping across the country. Let’s hope that mortgage lenders and banks take their own steps to help people stay in their homes. Foreclosurs help no one, and can drag down a struggling economy even more.
My hope is that the real estate professionals that helped cause this housing mess — the real estate agents, mortgage loan officers, bankers and appraisers — have learned from their errors. The residential real estate recovery should be a gradual one. Let’s hope that everyone involved doesn’t overreact once again and begin inflating housing prices to unrealistic levels all over again.
