Thursday, January 27, 2011

Best and Worst Cities

In our last post we discussed the idea of home values having a big impact on the best place to live. Interesting that just now I read a new article by Morgan Brennan about U.S. home values in 2011. The data in this article could very well help you decide if you fit in that 'sell high' category for where you are living right now. Of course if you're looking for the best places to retire - that is places that offer a lower cost of living - this data will help you too!

So, cutting right to the chase - the epicenter of the real estate bust, California appears to be rebounding. However, the other sunshine state, Florida is still wallowing under a near collapsed real estate market with no turn around evident, at least in the short term. The best cities to live in Florida are sometimes elusive but they are there.

The Local Market Monitor out of North Carolina recently presented their lists for the best and worst cities for home values in 2011.

The Best cities for home values in 2011

The following list represents the top 5 cities where home values are expected to rise this year.
#1. San Jose, CA - home values expected to rise 3% this year and 2% per year over the next 3 years.
#2 - Santa Ana, CA - values also expected to rise 3% this year and 2% per year over the next 3 years.
#3 - Bethesda, MD - home values expected to rise 2% this year and 2% per year over the next 3 years.
#4 - Pittsburgh, PA - values also expected to rise 2% this year and 2% per year over the next 3 years.
#5 - San Diego, CA - - home values expected to rise 2% this year and 2% per year over the next 3 years.

The Worst cities for home values in 2011

The following list represents the 5 cities where home values are expected to decline more this year.

#1 - Daytona Beach, FL - home values expected to drop by 11% this year.
#2 - Lakeland, FL - home values expected to drop by 7% this year.
#3 - Orlando, FL - values expected to decrease by 6% this year.
#4 - Boise City, Idaho - home values expected to drop by 7% this year.
#5 - Las Vegas, NV - home values expected to decrease by 5% this year.

So, what does this all mean and how can you take advantage of it?

Well, it's a matter of following the math. If you happen to live in one of those 'Best Cities' this could be your year to sell high and then turn around and buy low in one of those 'Worst Cities'. Oh, and don't be afraid those cities on the worst list are going to continue to slide in value to oblivion. According to LMM almost all of those cities are expected to rebound and experience an increase in value over the next three years.

There's some food for thought as you explore your options for the Best Place to Live or perhaps the Best Places to Retire.



Source: Personal Finance News from Yahoo! Finance

No comments: