America’s Sickest Housing Markets – There are a lot of markets that see no hoisting recovery in sight, even though prices have dropped, and these are America’s sickest economic areas that keep falling. Among them is Tucson, Arizona, which has doubled its vacancy rate in just one year, according to recent data published by the National Association of Realtors. Some cities have a vacancy rate of more than 10 percent.
Some markets, such as Washington and Boston, have began to stabilize from a year ago. The problem is far from over, but at least these cities haven’t seen further declines. However, prices could still fall another 10 percent by next year.
Most analysts believe inventories in some major metropolitan areas will take years of sales to get back to 2005 levels. Then, the normal inventory of homes for sale was replaced on average every six months and it was unusual for a house to be on the market for a year. Foreclosure rates remain high and only the robo-signing scandal has slowed the process.
Here’s a list of the sickest housing markets in the country:
- 1. Tucson, AZ
- 2. Indianapolis, IN
- 3. Memphis, TN
- 4. Atlanta, GA
- 5. Baton Rouge, LA
- 6. Dayton, OH
- 7. Detroit, MI (Tied for 8th)
- 8. Kansas City, MO (Tied for 8th)
- 9. St. Louis, MO
- 10. Oklahoma City, OK
For almost all real estate markets, the recent home sales slipped 1.5 percent in May, then doubled in June. It’s a problem that won’t go away and while most people see this as a problem, some investors see opportunity, but it could take decades to see a return on any property investment.