10. Deltona-Daytona Beach-Ormond Beach, Fla.
> Decline in home prices (peak to Q1, 2012): -55%
> Unemployment rate: 9.0% (107th highest)
> Median home price: $100,000 (20th lowest)
> Foreclosure rate: 1 in 185.4 housing units (57th highest)
Since reaching their peak in the first quarter of 2006, home prices in the Deltona-Daytona Beach-Ormond Beach area have consistently fallen. As of the first quarter of 2012, the area’s median home price had dropped 14.1% each year on average over the past five years. The median home price of $100,000 for the area was one of the nation’s lowest. Although homes have become highly devalued, causing the median mortgage payment to fall to just 8% of median income in 2012 from 22% at its peak, prices are expected to finally trend upward in the near future. Between the first quarter of 2012 and the first quarter of 2017, Fiserv projects home prices to rise 10% annually, one of the highest projected increases in the country.
9. Palm Coast, Fla.
> Decline in home prices (peak to Q1, 2012): -55%
> Unemployment rate: 12.3% (26th highest)
> Median home price: $117,000 (42nd lowest)
> Foreclosure rate: N/A
Between the first quarter of 2007 and the first quarter of 2012, home prices in Palm Coast fell at an annualized rate of 13.2%. Though home prices in the area have been falling for almost six years as of the first quarter of this year, since reaching peak price in the second quarter of 2006, a further 2.8% price decline is projected through the first quarter of 2013. The region’s deteriorating housing market has affected more than just home prices: Palm Coast’s 12.3% unemployment rate for July was four percentage points above that of the United States.
8. Lakeland-Winter Haven, Fla.
> Decline in home prices (peak to Q1, 2012): -55.7%
> Unemployment rate: 9.8% (60th highest)
> Median home price: $104,000 (23rd lowest)
> Foreclosure rate: 1 in 112.8 housing units (17th highest)
From its pre-recession peak in 2006, home prices fell by more than 55% in the Lakeland-Winter Haven metro region, which is located in central Florida. This decline was worse than all but two housing markets in the state — the Punta Gorda metro region and the Cape Coral-Fort Myers area. But while both of those markets have already begun to recover, Lakeland has continued to fall through the first quarter of this year. Foreclosures in the region have skyrocketed recently, rising by 85% from the first quarter of 2011 through the first quarter of this year. The foreclosure rate in Lakeland — one in every 112.8 homes — was the 17th highest in the country.
7. Riverside-San Bernardino-Ontario, Calif.
> Decline in home prices (peak to Q1, 2012): -56.3%
> Unemployment rate: 12.2% (27th highest)
> Median home price: $180,000 (65th highest)
> Foreclosure rate: 1 in 68.3 housing units (2nd highest)
The Riverside-San Bernadino-Ontario metro area, known as the Inland Empire, is the eighth largest in the U.S. with over 4.3 million residents. Over the last five years, as of the first quarter of 2012, the median home price of the area’s more-than 1 million households has fallen, at an annualized rate of 14.7%. Falling home prices in Inland Empire have also been accompanied by foreclosures, as one in every 68.3 housing units in the area was in foreclosure as of the second quarter of this year, during which there were 21,996 foreclosures. On Aug. 1, the city of San Bernardino filed for bankruptcy.
6. Bakersfield-Delano, Calif.
> Decline in home prices (peak to Q1, 2012): -58.3%
> Unemployment rate: 13.9% (18th highest)
> Median home price: $121,000 (46th lowest)
> Foreclosure rate: 1 in 79.5 housing units (6th highest)
In the five years ending with the first quarter of 2012, the median price of a home in the Bakersfield-Delano area fell at an annualized rate of 15%. Though home prices fell just 0.8% in the most recent of these five years, Fiserv projects that homes will continue to lose value through the first quarter of 2013. However, there may be some positive news in the coming years as home prices are projected to rise 8.7% from the first quarter of 2013 through the first quarter of 2014. Still, Bakersfield-Delano faces significant problems. The area’s unemployment rate was 13.9% in July, or 5.6 percentage points above the national rate, and slightly more than one in every 80 homes was in foreclosure in the second quarter of this year. Interest in the area’s homes has been limited recently, as 46% of all sales were foreclosure sales in the second quarter and property listings in July were down almost 45% year-over-year.
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