Real Estate: Is it Still an Asset or a Painful Liability?

The housing market in the U.S. is well supported. To an investor, viewed and considered. True. We have seen low mortgage interest rates. But this is only to attract people into homeownership which is worth the try and grandiose!?The suggestion is fueling an opportunity with hope. There will be a slowdown in the real estate market even as prices continue to rise in the local markets.?As a banker during my years in this field, I have seen the indicators that affect the institutions lending factors. The effect and its impact are associated with finance.

That doesn't mean the housing market is heading for a crash!??

The statement implied that investors pay closer attention to the market. Meanwhile, brace yourself for when the real estate boom hit again. It is hitting us as we speak.?

The Banking interest rates are lower but are the banks issuing out investing loans or re-financing any property types claim??Meanwhile, we're seeing real estate take a plunge and real estate investments becoming higher risk with a downturn in market valuations.

?You be the judge, according to GOBankingRates have researched and evaluated 500 cities to identify high rates of foreclosures and underwater mortgages (houses that are worth less owed)?exactly, what we're seeing in the market now. GoBankRates also looked at changes in real estate, the median home price, the number of DOM are on the market, and how these figure percentages of pricing slicing comparison to the national averages and the markets have lagged the nation as a whole [1].

The results are surprising.?

Florida was ranked number 50 with the highest number of cities with impending market trouble, and with Illinois market next.

The article points to 50 housing markets that might be turning unpredictable based on the following data:

Median List price: $249,999.00

2-year price change: -1.4%

Percentage of underwater mortgages: 6.9% (7%)

Foreclosures: 1 in every 1,921 homes

So how do we interrupt this dataset, home pricing has climbed, and we have seen this average of 9.4$ over the past two years, with prices dropping 1.4% in Fort Myers over the same period. In addition, houses spend an average105 days on the Fort Myers market average, compared with a national average of 66 days.

This listing includes #49Newport, Virginia, #48 Cumming, Georgia and at#47Toledo, Ohio, #46 Naperville, Illinois, #45 Sarasota, Florida, #44 Fort Lauderdale, Florida, #43 Menifee, California. #42 Tuscaloosa, Alabama, #41 Wilmington, Delaware, and #40 Naples, Florida, #39 West Palm Beach, Florida, #38 Waterbury, Connecticut, and #37 Plainfield, Illinois, #36 Bakersfield, California, and #35

Jacksonville, Florida, #34 Orlando, Florida, #33McKinney, Texas, #32 Summerville, South Carolina and #31 Annapolis, Maryland, #30 Stamford, Connecticut and #29 Champaign, Illinois, #28 Port Saint Lucie, Florida and #27 Bradenton, Florida and at #26 Ocala, Florida, #25 Dayton, Ohio and at #24 Lehigh Acres, Florida and #23 Rockford, Illinois, #22 Mobile, Alabama, #21 Cape Coral, Florida, #20 Fort Pierce, Florida, #19 Suffolk, Virginia and #18 Laurel, Maryland, #17Joliet, Illinois, #16 Valdosta, Georgia and #15 Decatur, Illinois,#14 Elgin, Illinois and #13 Riverview, Florida and #12 Atlanta, #11 Lawton, Oklahoma, #10 Hampton, Virginia,#9 Aurora, Illinois,#8 Bridgeport, Connecticut and #7Norfolk, Virginia, #6Miami Beach, Florida, #5 Baltimore, and #4 Columbus, Georgia and #3 Portsmouth, Virginia, #2 Lakewood, New Jersay and?

#1 Peoria, Illinois

Median list price: $124,450.00

2-year price change: -15.9%

Percentage of underwater mortgages: 21 %

Foreclosures: 1 in every 932 homes

The average number of DOM and the percentage of homes for sale have price cuts higher than the national averages. The underwater mortgage has doubled in percent nationwide.?The foreclosure rates are the highest on this list.

Of course, with real estate investing, you must consider the risk factors and research the markets.

To learn more about these real estate investing facts and their implications in the markets.?Check the real estate investing stats for correlations in your investing demographical area and housing parameters. Invest with care and know and research your Risks levels!

The article was written by: Valerie Robinson, REI., SR. PRES

VR PROPERTY GROUP SOLUTIONS, LLC

Article's citation-resources of data information [1].

Methodology: GOBankingRates determined which housing markets are "turning ugly" by analyzing the 500 largest U.S. cities using the following criteria: 1) Percentage of homes with negative equity ("underwater" on their mortgage), sourced from Zillow; 2) foreclosure rate, sourced from RealtyTrac's July 2019 index; 3) an average number of days on the market, sourced from Zillow's July 2019 index; 4) percentage of current for-sale listings on Zillow with a price cut during the month, sourced from Zillow's July 2019 index; 5) one-year change in median home listing price in percent; 6) one-year change in median home listing price in dollars; 7) two-year change in median home listing price in percent; and 8) two-year change in median home listing price in dollars, based on Zillow's July 2019 index of median home list prices as compared to July 2018 and July 2017.?The researched?Cities have a given score. The scoring basis on how many factors were worse than respective U.S. average figures. For instance, if a city had a percentage of "underwater" mortgages that were greater than 8.2% (the U.S. average), then this city for this factor is worse than the U.S. average. The data factors are scored, added together, and ranked.?The research scoring compiled on August 20, 2019

Citations:

GO BANKING RATES: Article Contribution and Author: Cameron Huddleston, GOBankingRates, October,22,2021-Real Estate Investing 101. Article Last Updated: September 22, 2021

Article written by: Valerie Robinson, REI., SR.PRES.

VR PROPERTY GROUP SOLUTIONS,LLC & ASSOCIATES

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