America’s Ten Worst Housing Markets Poised to Recover

10. Mobile, Ala.
> Change in home prices (2011 Q2 to 2012 Q2): 6.2%
> Change in home prices (2012 Q2 to 2013 Q2): 14.2%
> Population: 411,536
> Prices reached peak in: 2008 Q2 (-27.1%)
> Unemployment: 11.2%

Home prices in Mobile, Ala., dropped more than 27% in the past three years. From the second quarter of 2010 to the second quarter of 2011, prices dropped 18.8% — the second largest decrease in the country. According to the Mobile Area Association of Realtors, foreclosures and short sales accounted for 40% of all sales in the area for the 12 months that ended October 1. However, the metropolitan area is one of a few in the country where prices are expected to increase significantly this coming year and even more so the following year. The real estate market is expected to make a comeback in the coming 12 months, with a projected increase of 6.2% in prices.

9. Syracuse, N.Y.
> Change in home prices (2011 Q2 to 2012 Q2): 7.0%
> Change in home prices (2012 Q2 to 2013 Q2): 1.5%
> Population: 647,108
> Prices reached peak in: 2008 Q1 (-7.9%)
> Unemployment: 8.0%

Home prices in Syracuse, N.Y., decreased only 7.9% from their peak in the first quarter of 2008. This is not only significantly lower than the national drop of 32.3% from the national peak in the first quarter of 2006, but also significantly lower than other metropolitan areas on the list. The city’s housing market has done exceptionally well compared to the rest of the country. In 2010, it had the fifth-lowest foreclosure rate in the nation, according to RealtyTrac.

8. Las Cruces, N.M.
> Change in home prices (2011 Q2 to 2012 Q2): 7.4%
> Change in home prices (2012 Q2 to 2013 Q2): 7.3%
> Population: 211,617
> Prices reached peak in: 2007 Q3 (-12.6%)
> Unemployment: 6.6%

Las Cruces’s unemployment rate of 6.6% is the 47th lowest in the country and is much lower than the national rate of 9.1%. This measurement indicates a healthy economy, which in turn influences the housing market. From the second quarter of 2011 to the second quarter of 2012, housing prices are expected to increase 7.4%. This trend is projected to continue through the next year, and prices to increase another 7.3%.

7. Niles-Benton Harbor, Mich.
> Change in home prices (2011 Q2 to 2012 Q2): 7.5%
> Change in home prices (2012 Q2 to 2013 Q2): 2.4%
> Population: 160,414
> Prices reached peak in: 2007 Q4 (-13.2%)
> Unemployment: 10.7%

The Niles-Benton Harbor, Mich., metropolitan area has seen a 13.2% decrease in housing prices since its peak in the fourth quarter of 2007. In the last 12 months, housing prices dropped by 5.2%. Prices are expected to bounce back dramatically, increasing 7.5% by the second quarter of 2012, and then increasing just 2.4% in the following 12 months.

6. St. George, Utah
> Change in home prices (2011 Q2 to 2012 Q2): 7.9%
> Change in home prices (2012 Q2 to 2013 Q2): 3.5%
> Population: 138,492
> Prices reached peak in: 2006 Q4 (-41.4%)
> Unemployment: 9.6%

Home prices have decreased by 41.4% in St. George, Utah, since the fourth quarter of 2006. In just the last twelve months, prices have decreased 12.4% — the eighth largest drop in the country. However, from the second quarter of 2011 to the second quarter of 2012 prices are projected to increase 7.9%.