Top 10 Smart Markets To Purchase A home In For 2009

Are you looking for a deal on a new home. The prevailing formula that home buyers and investors are looking for have a common characteristic. Is the home I am going to buy a good deal?

Motivated sellers are what driving the market.  And yes, banks who have REO property are considered motivated sellers. These are people that are willing to deal to sell the home, not those who are listing to see what happens or still expect 2006 prices. 

Lets face it, all these government programs sound great on the evening news, but realistic home prices sell homes.

I learned a great lesson in college by a professor of marketing. When you go into McDonald’s, you will not buy a $10 dollar hamburger. It is just not going to happen. Yet if you are in a fancy restaurant, you would be confused by a $2.49 quarter pound burger.

Perspective is everything. If you think you are being overcharged you pull back and if you feel you are getting something inferior you will also postpone the buying decision.

That is why capitalism works so well. If the markets had their way, we would have been out of this mess a while ago. Prices would have fallen drastically as the bubble burst and then buyers would have raced in to get the deals. It would have been a painful and quick experience.

Instead we are in a period of slow decline as buyers wait for the next big government program, price drop, or indicator that we have a bottom.

It is the death of a thousand cuts.

So what markets where motivated sellers are dominant. They will drive prices to the point that buyers will know they are getting a fair deal and have the potential to make a profit.

Top 10 Smart Markets To Purchase A home In For 2009

  1. Las Vegas
  2. Sacramento, Calif.
  3. San Diego, Calif.
  4. Los Angeles
  5. Detroit
  6. Phoenix
  7. San Francisco
  8. Washington, D.C.
  9. San Jose
  10. Atlanta

via Forbes

Update: Rob Blake does an excellent job explaining this while giving other alternatives in a post a BiggerPockets:

Maybe that is the best answer. Do nothing and let the real estate market absorb all the foreclose homes at depressed prices. This will eventually mean a bottom in home price gets hit or what economists call an “equilibrium”. The theory goes this will happen anyway and the only thing the Feds or lenders can do with too much “help” is slow down the inevitable. If that’s true, well-meaning “help” turns out to be “hindrance”. Not good…

Related posts:
  1. Pulte Homes Says New Home Sales Will Increase When Foreclosures Slow Down
  2. NAR 1st Quarter 2009 Numbers Sobering But There Are Silver Linings In Them
  3. Using Government to Stop Real Estate Bubbles Kills Markets
  4. Top 10 Most Affordable Real Estate Markets in 2009

« « Long Island Woman Used Forged Documents To Get Rent Subsidies| Federal Bailout Money Going Straight To Bottom Line, Not To Loans » »

There Are 8 Responses So Far. »

  1. This is a great time to buy no doubt about it I live in Sacramento and homes are dirt cheap. THe problem is getting loans for these purchases.

  2. Finally a list that has Las Vegas in the #1 spot and for a good reason!

  3. Las Vegas median resale prices are near what they were early in the decade and that makes the market so appealing now. No wonder LV tops this list and hopefully stays there at least until we get the inventory down to where it can be said to be normal.

  4. Atlanta as #10? I will take it! We were not as over-bought as most markets which should lead to a faster recovery…..I hope.

  5. Have there been any stats released for foreclosure’s on secondary homes? (ie investment properties and vacation homes)

    Cheers,

    Steve

  6. [...] Top 10 Smart Markets To Purchase A home In For 2009 at The Real Estate Bloggers [...]

  7. [...] came across this article from The Real Estate Bloggers, Top 10 Smart Markets To Purchase A home In For 2009, when doing some reading this past [...]

  8. I agree with most of the list … but Detroit??? Come on!

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      Pete | 21Mar10 | More
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      Brandon | 20Mar10 | More
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