Cities Recovering From the Foreclosure Crisis

Cities Recovering From the Foreclosure Crisis

Cities Where Homes Are Losing Most Value

What this article from Forbes means to investors...? Affordability is the big issue most buyers are faced with. As an investor it is important to create value for their buyer (wholesale or retail. This presents return business as well as content buyers.

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"It's not news that Las Vegas, where value has dropped 48%, Miami (down 38%), and Orlando (down 31%) saw a burst of homebuilding fueled by bad loans and rampant house flipping between the years of 2002 and 2006, and that those building bubbles subsequently collapsed. But it's the exurban cities just outside of easy commuting distance from the most desirable West Coast and Sunbelt metros where home values have taken the biggest pounding.

"In many of these relatively affordable bedroom communities, subprime lending was rampant. As families clamored to buy homes, prices inflated to match their exuberance. But when the mortgage market disintegrated, these outer-fringe cities were left with a glut of new housing, and the value of these once-desired homes took a nosedive. Bay area satellite cities Stockton and Modesto, where home values have dropped 54% and 53% respectively, appealed to middle-to-low income buyers--and subprime lenders."