WASHINGTON, D.C. – July 21, 2015 – (RealEstateRama) — With the 2008 financial recession the United States housing market went through a serious collapse. In markets all over the country, homeowners found it increasingly difficult to pay their mortgages, and many times wound up losing their homes entirely.
Sub-prime lending, which is lending to someone who isn’t likely to be able to make the repayment schedule, led to a high number of foreclosures. This drastically reduced house prices across the board. Because of the fall in prices, many owners ended up owing more on their mortgages than they were currently worth. With the retirement of many tied up in the equity of their home, this affected more than the present day, as futures were put in jeopardy.
Luckily, the housing market is on the rise in many places across the country. Interest rates are lower and more sellers are coming into the markets, making it advantageous for buyers as well. Here are some examples of the most expensive, least expensive, and fastest growing real estate markets in the United States.
Some of the most expensive real estate in the whole country is at two opposite sides of the continent. The first is northern California. Cities like San Francisco and Palo Alto offer some of the most expensive real estate in the country, with the median home price hovering around $1,000,000.
While the prices are steep, these are some of the most affluent areas in the nation as the median household income also nears the highest in the country. The people living in these areas, can typically afford to live in these high priced areas. Additionally, real estate in the northeast is historically high priced. For example, Greenwich, CT and New York City boast housing prices that can rival those of northern California.
Much of the country’s least expensive housing can be found in the south, in areas that aren’t nearly as affluent as northern California or some northeastern communities. The top 5 least expensive housing markets in the country are Chattooga Country, GA, Lake Country, TN, Edgecombe County, NC, and Barnwell County, SC.
While these counties offer home prices that are very low, usually between $40,000 and $70,000, they prove to be still too expensive for many citizens to purchase. The percentage of people able to afford homes in these towns is below 10% in all of them. The economies of many of these towns are struggling to create jobs that allow them to eventually become homeowners, leading to a low homeowner percentage.
One of the fastest growing markets in the whole country is southern California. This area was hit as hard as any market in the country after financial recession, when homeownership dropped by over 20%. However, the southern California housing markets have come roaring back over the past few months.
During the recession, the falling prices of homes kept sellers from listing their properties. The result was a bidding war on the few properties that were available in this prime real estate location. Thankfully, these trends are being reversed.
The real estate San Diego and Los Angeles make up two of the biggest markets experiencing comebacks in housing. As the country has recovered from the collapse, lower interest rates have made it possible for people to start buying houses again. This increased willingness of buyers has attracted more sellers to the market, which helps keep prices relatively low.
The median home price in this area is coming in at just under $500,000. With many people already attracted to this area, a thriving real estate market will attract even more. Their only problem will be finding a place for everyone that wants a home. With the location of this real estate market, prices will always be higher than other places around the country. But they stay affordable when more and more sellers come into the market; this is happening now in southern California.