Housing Market for July 2011
- At July 6, 2011
- By Chatham NJ Realtor
- In Chatham
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The Northeast mainly concerning tri state areas of Connecticut, New York and New Jersey seems to be better than many other places in the country. There still are jobs here and thank GOD for the Pharma Companies and Economic strengths of the suburbs of NYC
The Easy answer that everyone agrees to is the creation of jobs will truly help the overall economy which will in turn affect the housing sector and the financial strength we once had.
The worst place to invest: Miami, Florida
Cumulative growth from 2005 to 2011: -54.3%
Annualized growth from 2011 to 2016: -0.7%
The second worst place to invest: Atlantic City, New Jersey
Cumulative growth from 2005 to 2011: -34.05%
Annualized growth from 2011 to 2016: 0.2%
#3 Nassau County, New York
Cumulative growth from 2005 to 2011: -27.3%
Annualized growth from 2011 to 2016: 0.7%
The next three are tied for #4
#4 (tie) Fort Lauderdale, Florida
Cumulative growth from 2005 to 2011: -52.9%
Annualized growth from 2011 to 2016: 0.8%
#4 (tie) Midland, Texas
Cumulative growth from 2005 to 2011: -40.95%
Annualized growth from 2011 to 2016: 0.8%
#4 (tie) Washington, D.C.
Cumulative growth from 2005 to 2011: -28.1%
Annualized growth from 2011 to 2016: 0.8%
#5 Abilene, Texas
Cumulative growth from 2005 to 2011: -18.9%
Annualized growth from 2011 to 2016: 1.0%
#6 Morgantown, West Virginia
Cumulative growth from 2005 to 2011: -4.15%
Annualized growth from 2011 to 2016: 1.1%
The next two are tied for #7
#7 (tie) Austin, Texas
Cumulative growth from 2005 to 2011: 2.63%
Annualized growth from 2011 to 2016: 1.2%
#7 (tie) Waterloo-Cedar Falls, Iowa
Cumulative growth from 2005 to 2011: -2.73%
Annualized growth from 2011 to 2016: 1.2%
The next five are tied for #8
#8 (tie) Baton Rouge, Louisiana
Cumulative growth from 2005 to 2011: -14.48%
Annualized growth from 2011 to 2016: 1.4%
#8 (tie) Amarillo, Texas
Cumulative growth from 2005 to 2011: -10.5%
Annualized growth from 2011 to 2016: 1.4%
#8 (tie) Lancaster, Pennsylvania
Cumulative growth from 2005 to 2011: -5.15%
Annualized growth from 2011 to 2016: 1.4%
#8 (tie) Monroe, Louisiana
Cumulative growth from 2005 to 2011: -11.31%
Annualized growth from 2011 to 2016: 1.4%
#8 (tie) Shreveport, Louisiana
Cumulative growth from 2005 to 2011: -10.38%
Annualized growth from 2011 to 2016: 1.4%
Although there is little projected growth in these specific locations, many like Austin, and Baton Rouge and others experienced far lighter price declines than in the more “popular” areas such as Arizona, New Mexico, Florida, and the like.
Additionally, even in the hardest hit areas, housing prices are low compared to the rents that many are paying for decent housing. That factor is not often mentioned in the press. Another rarely mentioned fact: if you are planning to be in a location for some time, today’s low mortgage rates (yes, if you qualify) combined with today’s distressed housing prices (look for foreclosures and short sales if you can) make for a once in a lifetime opportunity to acquire housing at a reasonable price for the LONG TERM.
Yes the long term–another item not often mentioned. Even in the areas mentioned in this article which are “only” projected to grow under 2% over the next 5 years, at least there is POSITIVE growth projected. Where else can you provide a life necessity (housing) that one can acquire and get tax advantages (deduct interest) vs. renting? And let’s look at renting; again, if you have plans to stay in the locale where you are, then renting is a guaranteed outflow of money with no return. With buying at today’s levels, even the dismal articles one now sees show stability or small growth in upcoming years. That sounds like a recipe for the right time to buy to me.
Out of chaos comes opportunity. And don’t forget it’s human nature to flee in the wrong direction at the wrong time. For instance, buying when stocks are surging vs. acquiring equities for the long run in a systematic way over time regardless of current price levels–translation: most people buy when the hype is high and sell when stocks are plunging; exactly opposite of what they should be doing to better themselves. I believe that housing correlates well with this stock analogy: buying housing or rental units now, if it’s right for you, is buying into and/or after the bulk of the plunge has taken place. Growth in value may be slow, but relative stability is not a bad thing. It is highly likely that housing will prove to be a great current investment for the 10-20 years that lay ahead as our population continues to support household formation.