Is the Party Over?
Economy.com recently reviewed the top 100 metropolitan real estate markets and determined that approximately one-third will experience a significant downturn in 2006 and 2007. A few markets are even expected to drop as much as 12% of the net two years.
Las Vegas, with a median priced home of $296,000, leads the list of markets turning downward, along with California cities San Diego ($598,700,) Santa Ana ($683,300,) Riverside ($362,800,) and Los Angeles ($412,900.) The states with the most declining house values are expected to be California, Florida, and Maryland.
All of the news is not as dark and glum. Two-thirds of the markets are expected to soar through the roof. NAR chief economist David Lereah believes that when home sales get too expensive for homebuyers, they tend to pull up stakes and go elsewhere. It happened in California when one-third of homebuyers moved next door to Las Vegas to buy new homes. Now, housing gamblers are moving out and heading to Texas, Arizona, Oklahoma and Arkansas in search of new opportunities.
San Antonio, Texas, with a median home price of $129,900, leads the top 100 with over 15% growth by 2007 in real estate values, followed by Jacksonville, Florida ($164,700) El Paso ($107,100,) Little Rock ($115,700,) Baton Rouge, ($133,800,) and Richmond ($191,800.) The three hot states to watch with the most cities in the top 100 for growth are Texas, Tennessee, and Virginia.
For more information, contact MillionSaverHomes.com a local Las Vegas real estate broker at 702.212.3513.
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