Government stimulus money coupled with lower home prices and near record low mortgage rates are driving a rebound in home sales in the majority of the hardest hit housing markets. The Worst 25 forecast housing markets are still projected to deflate in value over the rest of 2010, but not at the rapid pace of deflation that was first witnessed as markets move towards stabilizing.
The improving forecast shows that housing markets are improving over 2009 levels, but still have a long way to go before fully stabilizing. Increasing foreclosures during the rest of the year will hinder markets in the Worst 25 from recovering, however, until foreclosures can be absorbed by the marketplace. Bank-assisted short sales are also projected to send markets to lower levels as bankers get the inventory of troubled housing sold.
Manhattan, New York retains the #1 position on the worst 25, followed by Las Vegas, where home sales have risen, but have a long way to go before the market can possibly stabilize. Economic volatility, declining home prices and tighter mortgage under-writing will slow markets in their recovery.
Providence, Rhode Island moves into the third position followed by nearby Newport. Miami, Florida, where an over-supply of newly constructed condominiums puts a drag on the market is now forecast to take the fifth slot.
Rank Real Estate Market 2010 Forecast
|Rank||Real Estate Market||2010 Forecast|
|1.||Manhattan, NY||− 13.8%|
|2.||Las Vegas, NV||− 13.2%|
|3.||Phoenix, AZ||− 12.9%|
|4.||Honolulu, HI||− 12.9%|
|5.||Providence, RI||− 12.6%|
|6.||Newport, RI||− 12.1%|
|7.||Henderson, NV||− 11.6%|
|8.||Greenwich, CT||− 11.3%|
|9.||Columbia, SC||− 11.2%|
|10.||Miami , FL||− 11.1%|
|12.||Charleston, SC||− 11.1%|
|13.||Salem, OR||− 10.7%|
|14.||Prince George’s, MD||− 10.5%|
|15.||Brooklyn & Queens, NY||− 10.3%|
|16.||Myrtle Beach, SC||− 10.2%|
|17.||Ogden, UT||− 10.2%|
|18.||Bethesda, MD||− 10.1%|
|19.||Richmond, VA||− 10.0%|
|21.||Scottsdale, AZ||− 9.8%|
|23.||Palm Beach, FL||−8.8%|
|25.||Orlando, FL||− 7.2%|
* The Worst 25 Markets are composed of cities that have the highest probability of reaching their forecast deflation in 2010 from the more than 250 local markets Housing Predictor forecasts