Housing market experts have released a list of cities in the U.S. that are expected to suffer from a drop in home prices. According to them, home buyers who search bank owned homes and other cheap properties should look in on these areas in the coming year.
In a report published by research firm Local Market Monitor (LMM), Atlantic City, New Jersey is on top of the list of cities that will likely experience real estate market problems due to a decline in home prices in the coming 12 months.
According to the report, buying foreclosure homes or regular residences in the city now will be a gamble as the area will experience one of the heaviest depreciation in home prices in the coming year.
The report also stated that cities where prices have been artificially inflated by building restrictions, and whose housing industry looked better than it really was due to internal migration, are the most likely to experience declines in home value within the next 12 months.
Those who search bank owned homes will be better off waiting out the year as home prices in Atlantic City are expected to decline by nine percent within a 12-month period. Local realtors have revealed that the local housing market is still weighed down by unsold home inventory covering 12 months.
Realtors have explained that this prediction is based on observations that the recession has started to take its toll on the city and that second home buying has started to decline, which effectively hinder local economic recovery. Moreover, bank foreclosures and the drop in gambling industry revenues have caused a lot of people to lose jobs and unemployment rates to soar.
Several more factors were considered to make LMM’s forecast report. Rates of foreclosure and repossessed homes, local income and policies on land planning are just some of the market elements considered by the research firm.
Atlantic City is joined in the list by Pacific Northwest cities, mainly because boundaries on urban growth and limited number of properties ideal for development are holding back home building in the region. Portland, Oregon and Provo, Utah are two of the metropolitan areas included in LMM’s list.
Buyers who search bank owned homes and those looking for a good residential property deal will be able to find some cheap houses among the cities included in the research firm’s forecast report, but they would need to wait 12 months before they can do that.
Author Resource:-> Original Post: U.S. Areas Where Buyers Can Search Bank Owned Homes in the Future on BankForeclosuresSale.com.
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