MSNBC and 24/7 Wall St. just published a list of 10 cities with the fewest underwater homes. Could these be great markets for real estate investing?
You might think that areas where there are fewer underwater homes and likely fewer short sales and REOs may present fewer real estate investing opportunities. However, when you take a look at all of the numbers you will also find a number of these cities have some of the lowest unemployment rates in the country and have some of the strongest markets in terms of home values. This indicates better income levels and probably more likelihood that there will be further growth. So while these cities may not produce the largest spreads for real estate investing companies over the next they will perhaps be safe bets. Let’s take a look at the list and make your own decision.
1. Rochester, NY
% of underwater homes: 3.41
Unemployment: 7.1%
Price change in last 12 months: +0.25%
2. El Paso, TX
% of underwater homes: 3.89
Unemployment: 10.6%
Price change in last 12 months: +5.73%
3. Albany, NY
% of underwater homes: 4.01
Unemployment: 6.7%
Price change in last 12 months: -0.9%
4. Buffalo, NY
% of underwater homes: 4.22
Unemployment: 7.3%
Price change in last 12 months: 3.92%
5. Fayetteville, NC
% of underwater homes: 4.56
Unemployment: 6.6%
Price change in last 12 months: +1.14%
6. Huntsville, AL
% of underwater homes: 5.3
Unemployment: 8.1%
Price change in last 12 months: 4.39%
7. Lancaster, PA
% of underwater homes: 5.44
Unemployment: 7.3%
Price change in last 12 months: -1.83%
8. Oklahoma City, OK
% of underwater homes: 5.71
Unemployment: 5%
Price change in last 12 months: +0.83%
9. Pittsburgh, PA
% of underwater homes: 5.93
Unemployment: 7.8%
Price change in last 12 months: +4.39%
10. Honolulu, HI
% of underwater homes: 6.58
Unemployment: 5.5%
Price change in last 12 months: +6.97%
