Risky Properties

There is little doubt that the values of homes are declining and that some areas of the United States have become “riskier” markets. Home values have declined more during the first quarter of the current year than they have in any quarter over the past seventeen years. According to PMI Mortgage Insurance, home values may decline even further over the next couple years.

The following is a sneak peak into the so called “risky” market areas as well as the stable market areas, along with some great tips for how to sell your home in these post-bubble conditions. The markets that carry the most risk are those that where homes appreciated rapidly in the previous years due to the real-estate bubble, which many used as a method to turn make money by flipping houses. However, with the sudden market crash, the following areas have been hit especially hard, and have consequently experienced the most foreclosures: - Los Angeles-Long Beach-Glendale, Calif - Santa Ana-Anaheim-Irvine, Calif - Orlando-Kissimmee, Fla - Phoenix-Mesa-Scottsdale, Ariz - Miami-Miami Beach-Kendall, Fla - Tampa-St. Petersburg-Clearwater, Fla - Washington, DC-Arlington-Alexandria - Boston-Quincy, Mass - Riverside-San Bernardino-Ontario, Calif - Las Vegas-Paradise, Nev - West Palm Beach-Boca Raton-Boynton Beach, Fla - Oakland-Fremont-Hayward, Calif - Fort Lauderdale-Pompano Beach-Deerfield Beach, Fla - San Diego-Carlsbad-San Marcos, Calif These cities are calculated to be risky based on a formula that includes a number of variables, including: affordability relative to per capita income, data on past house sales, mortgage rates, appreciation rates, and employment rates.

However, on a high note, these areas still have very strong employment rates which can help them weather the storm. Amazingly, both the Midwest and Texas remained largely unaffected by the boom in the real estate market, and were thus mostly unaffected by the current drop in real estate values. Among these areas are: - Houston-Sugar Land-Baytown, Texas - Indianapolis-Carmel, Ind - Fort Worth-Arlington, Texas - Dallas-Plano-Irvington, Texas - Columbus, Ohio - Pittsburgh If you are selling your home today then it is crucial to utilize the Internet as a marketing tool for your home. Potential buyers are using the Internet more than ever to search for homes. Before setting foot into an open house, buyers feel the need to narrow down the search for their dream home by using the internet to first look at photographs or take virtual tours.

If your selling your home, you might as well stay ahead of the game by ensuring that your home is portrayed in a positive and visually appealing manner on the internet. Look for agents that understand technology and are willing to make a website for every house that they represent. If you are unable to find an agent that will do this, look into setting up a basic website yourself.