As potential new homebuyers and move up buyers look to take advantage of the falling home prices, historically low rates, and tax credits there are 5 markets that may have further to fall (as reported by Smart Money).
1.) Detroit: Housing prices fell 4.9% in March, marking the cities largest monthly decline since January 1991. Houses in Detroit are currently selling at 1995 levels.
2.) New York City: New York avoided price declines early, but the city saw its largest monthly decline in March, at 2.5%. Many expect New York to be the last city to see a turnaround given that it was late to the price declines and the impacts of the layoffs on Wall Street.
3.) Phoenix: Home prices in this city have dropped 53% from their peak in June 2006. In March alone, prices dropped another 4.5%. The biggest problem now facing the southwest is the glut of housing inventory to be absorbed.
4.) Portland: This city dropped by 2.1% in March. The Pacific Northwest was amount the last to burst as well and most expect it to be one of the last to join a housing recovery.
5.) Minneapolis: Prices in this city dropped a whopping 6.1% in March, the largest drop of any metro area since data racking began in 1987. More than half of the sales in Minneapolis in March were due to foreclosures or short-sales. A glut of foreclosures will certainly weigh on home prices in this city for months to come.
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