In the United States of America, in regards to the real estate market the ratio of owned property has always outweighed rented property. Prior to the subprime mortgage crisis, the real estate market in USA favored real estate investments. Buying a property was considered to be a good investment. The predominant situation of the real estate market depends exceedingly on the housing markets. A mild fluctuation in the real estate market can affect the housing market to a great extent. With the deterioration of the U.S. economy, people have been investing less money in real estate.
by Emily Jones
Recently we have seen some of the worst real estate markets in the history of our Country. If you want to invest in real estate, first calculate a mortgage to avoid incurring real-estate debt because the economy has still not recovered fully.
Many of the states and cities in America have thousands of unsold homes. Many cities have been struggling economically for years and thus the real estate market has suffered too.
Worst Real Estate Markets:
-
Detroit in Michigan – In Detroit, the largest city in Michigan has an employment rate of 13.70% and the median price cut is 10.64%. The home listing with price cuts is 27.66%. The city built on an auto industry is feeling the crunch of the real estate market. It was badly hit in the recession.
-
Flint in Michigan – Flint too is another city in Michigan which has been badly hit by the economic downturn. Thus, the real estate market is suffering with price cut listings at 31.19% and median price cut at 11.55%. The unemployment rate in this city is around 14.70%.
-
Merced in California – The houses in Merced have lost at least 62% of their value. This is the biggest drop in the whole country. The price cut listings in this city in California is 14.5% and the median price cut is at 10.01%. Here the unemployment rate is higher than that in Flint and Detroit, which is at 18.10%.
-
El Centro in California – In El Centro of California, the price cut listings are at 15.82% and the median price cut is at 9.68%. The unemployment rate here is higher than the above three cities. The unemployment rate at 27.50% is rather the highest amongst all the American cities.
-
Ocala in California – Here the unemployment rate is 13.60%, the median price cut is at 9.59% and the price cut listings are at 21.07%.
-
Vero Beach in Florida – With 18.43% listings with price cuts and 9.57% median price cut and unemployment at 13.40% this city is said to be home to most of the retired Fortune 500 CEOs.
-
Lakeland in Florida – The real estate developers in this city developed far more property than was actually required. The unemployment is at 12% and the price cut listings are at 23.15% while the median cut price is at 9.52%.
-
Miami-Fort Lauderdale in Florida – Here too real estate did the same thing as in Lakeland. Here the unemployment percentage, price cut listings and the median price cut is same as that of Lakeland – 12%, 23.15%, 9.52% respectively.
-
Santa Cruz in California – Here the unemployment at 11.50% has kept the housing prices low with price cut listings at 17.77 % and median price cut at 9.23%. Some other places badly hit by the economic downturn are Cleveland, Cincinnati, San Francisco, Milwaukee, etc.
