What Are Projected To Be The Worst Performing Real Estate Markets In The U.S. During 2020?
Property remains one of the safest investments in any portfolio. It is usually able to ride out even the worst of stock market dips – if the person who is investing in the property has the patience to look to the long term—but also given the resilience of ownership to the vagaries of market movement there are those markets that will under perform. In 2020 these are the markets in the U.S. that will not be rewarding property investors.
2020 is expected to see overall growth on investment of around 0.8% – this is significantly lower than in recent years, but even that is going to shine when compared to these markets.
If a home is sitting on the market for more than 100 days, it’s a sure sign that the market in the area is depressed. In the U.S., at the moment out of the 15 worst performing cities, six are in Florida.
For instance, homes in Pompano Beach, Florida, have spent an average of 111 days on the market. Those listings have seen an average price cut of 16.06% while they have been on the market. Homes in Boynton Beach, Florida, spent an average of 97 days on the market.
However, Albany New York sees homes on the market for an average of 100 days as well. Of those homes, over 12% have seen price cuts, which is indicative of a housing market that is not in the best of shape.
For those in search of a property on the island paradise of Hawaii, there may be good news, but perhaps not if one is looking for along term investment. Homes in Honolulu, Hawaii, have spent an average of 92 days on the market. The price cuts average around 14%. It is also worth noting that during 2019 there were 2,700 homes on the market. With an average list price of $640,000, there may very well be an opportunity for the savvy investor- but only for those with an eye for long term investment.
Newark, New Jersey, is near the top of the list when it comes to depressed real estate. Homes in this area spent an astonishing average of 152 days on Zillow. This made even more remarkable given the fact that the average list price of a home in the city is a paltry $252,844.
However, there is an even more astonishing statistic. One of the U.S.A.’s most popular destinations for both tourism and retirees in search of the sun, Miami Beach, Florida, saw houses on the market for an astounding average of 188 days. Given its climate and iconic status as a holiday destination, as well as the number of new developments that are taking place in Miami, this should cause any companies that buy houses for cash in the area cause for concern. It may be a case of oversupply – but investors should be cautious.
Property investment remains a haven for those who are looking to diversify a portfolio. Still, some areas are only going to reward those who take a careful look at the fundamentals and have a long term outlook.