Friday, January 23, 2009

Top Ten Foreclosure Cities

1. Merced, CA

2. Modesto, CA

3. Stockton, CA

4. Riverside, CA

5. Detroit, MI

6. Fort Lauderdale, FL

7. Cape Coral, FL

8. Vallejo, CA

9. Las Vegas, NV

10. Sacramento, CA

Interesting that Merced is the top foreclosure city in the US. Why Merced? Perhaps because it was a hotbed for home investors over the last few years ever since the new University of California campus was chosen there. I saw a lot of people buy there with the expectation that some 30,000 students and faculty would greatly impact the value of real estate in that city. Just buying anything in any market does not guarantee you success. We may all agree that now is a good time to buy. What is more difficult is what location, property type, etc. is best to buy. Following the herd is also not wise. The herd was very present in Las Vegas too as seen by their 9th place ranking. The land of glitter had many non-owner purchases. These being the easiest to let go to foreclosure when times get tough. The strongest markets? - those that have very high owner occupant ratios. Look at the central bay area with ratios as high as 98% for owner occupied single family homes - now that is stability.

No comments: