5 Cities
Where Homes Aren't Selling
Tisa Silver, Investopedia.com
Jan 12th, 2010
ARTICLE TOOLS:
It's no secret that the favor of the housing market has shifted
away from sellers and into the arms of buyers. With this shift,
the U.S. map has been broken down in yet another economic manner--by
housing conditions.
Several factors can be used to examine how good or bad a market
is for selling a house. We will examine several large cities on
the basis of property value growth (or decline) and days on market.
The Standard & Poor Case-Shiller Home Price Indices tracks
property values in 20 metropolitan regions within the United States.
Each index measures the growth in value of residential real estate,
and the index family also includes a national index and two composite
indices. Data from S&P reflects the changes in property values
from October, 2008 to October, 2009.
Real estate agents, use "days on market" to relay (on
average) how long it takes for a real estate listing to become a
ratified contract. Days on market were provided by AOL Real Estate.
Las Vegas
The housing market downturn took a huge bite of Sin City property
values. In the past year, property values fell 26.6%. The good news
is that on a monthly basis, property values appear to be falling
at a slower pace. From August-September, 2009, values fell 0.9%
and from September-October, 2009 values fell just 0.1%. On average,
a home sits on the market for 142 days.
Phoenix
In October 2009, property values in Phoenix were 18.1% lower than
one year earlier. However, values have recently risen, and have
managed to do so at an increasing pace. From August-September, and
September-October, 2009, values rose by 0.8% and 1.3%, respectively.
Homes spend an average of just over four months (131 days) on the
market in Phoenix.
Tampa
Two of the five cities with the largest property value declines
are located in Florida. Tampa's property values dropped 15.2% in
the past year, and in recent months they have fallen at an increasing
pace. From August-September, values fell 0.6%. The decline from
September-October was over two-times greater, coming in at 1.6%.
Homes in Tampa spend an average of 197 days on the market, representing
the lengthiest stay of all 20 metropolitan regions.
Detroit
Motor City property values shrank 15.1% from October, 2008 to October,
2009. On a month-to-month basis, things may be picking up. Property
values actually rose 1.8% from August-September. They continued
to rise from September-October, but at a much slower pace of 0.2%.
Homes appear to be moving relatively faster in Detroit, staying
on the market for an average of 124 days.
Miami
Miami is the second city in Florida to be hit particularly hard
by declining property values. As of October, 2009, property values
had fallen 14% from the previous year's levels. Monthly figures
show mixed results. The market showed some signs of life, posting
a 0.5% gain between August-September. The growth was short-lived,
values fell 0.4% from September to October. Houses in Miami have
spent a considerable amount of time on the market, taking an average
of 168 days to move.
Conclusion
Many people say real estate is about three things: location, location
and location. Unfortunately, no location on our list managed to
escape the overall market downturn. Sell if you must, but be aware
of trends in your area, including property value and days on the
market, on the front end, so you can make the most informed decision
possible.
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