Top 10 Bargain Markets for Homebuyers

Home prices in these cities show double-digit drops over the past year

By Annalisa Burgos, FrontDoor.com | Published: 3/18/2009

Bargain Market #1: Stockton, CA

Prices in this Northern California city fell more than 40 percent in 2008.
Photo courtesy of Stockton Conference & Visitors Bureau

The inland California cities — Stockton, Merced, Modesto, Vallejo, Riverside, Bakersfield, Madera and Fresno, to name a few — have been the hardest hit since the real estate housing bubble burst. Home prices in Stockton plummeted a whopping 40.19 percent last year, dragged down by a barrage of foreclosures on the market.

But Stockton’s proximity to both the San Francisco Bay Area and the Sacramento area gives it an advantage over other struggling markets. In the past, Bay Area folks sought affordable housing in Stockton (which changed when the market became inflated). Once prices stabilize, the city will have the potential to return to its “affordable” status.

Bargain Market #2: Naples, FL

Home prices in Naples fell nearly 33 percent last year.

Known for its vibrant art scene and the natural scenery of the nearby Everglades, Naples was another vacation destination that was overrun with real estate investors during the boom years. Prices plummeted 32.87 percent over the past year, offering new opportunities for buyers looking to live the beach-town lifestyle.

Bargain Market #3: Las Vegas, NV

Prices in Sin City have dropped more than 32 percent over the past year.

Gamblers weren’t the only ones taking risks in Sin City. Eager developers and investors flocked to Las Vegas looking to cash in big on the real estate boom. The hype is over, and prices have plunged 32.60 percent since last year. The city is consistently among RealtyTrac’s list of top foreclosure markets, making this area prime for bargain hunters who want to spice up their lifestyle.
•Explore 5 great neighborhoods in Las Vegas in FrontDoor’s City Guide

Bargain Market #4: Ft. Lauderdale, FL

Ft. Lauderdale’s home prices plunged nearly 26 percent in 2008.

Shedding its “spring break” reputation, Ft. Lauderdale has redefined itself as a pedestrian-friendly, 24-hour community offering a mix of traditional Old Florida neighborhoods with trendy shopping and nightlife. Prices have fallen 25.95 percent since last year, so if a laid-back yet lively lifestyle is what you crave, start here.

Bargain Market #5: Miami, FL

Miami’s home prices are down more than 24 percent year-over-year.

The heat is on in Miami. Home prices have come down 24.15 percent over the past year, meaning you won’t have to shell out as much to enjoy tropical weather, beautiful beaches and hot nightlife year-round.

Bargain Market #6: Napa, CA

This wine-country city saw home prices drop more than 20 percent in 2008.

Like many vacation destinations, Napa in Northern California saw a surge in speculative buying that inflated real estate prices during the boom. Today, buyers can find homes in beautiful wine country selling for 20.11 percent less than last year. If you’re a luxury homebuyer, you may find multi-million-dollar properties offered at steep discounts.

Bargain Market #7: Phoenix, AZ

Prices in Phoenix fell nearly 19 percent last year.

The Valley of the Sun is teeming with potential bargains, with home prices down 18.85 percent year-over-year. The Phoenix market was a hotbed of speculative overbuying during the real estate boom, and these days, stretched-thin investors may be willing to negotiate. Homebuyers who can appreciate this rugged Southwest region will find many diverse neighborhoods to choose from.

Bargain Market #8: San Diego, CA

San Diego’s home prices fell 18 percent in 2008.

With year-round sun, sand and surf, who wouldn’t want to live in Southern California’s gem, San Diego? Home prices are down 18.03 percent over the past year, so you could find a great deal in this once super-hot market. Plus, it doesn’t hurt to be a couple hours’ drive from Los Angeles, in case you want to bargain hunt there as well.

Bargain Market #9: Detroit, MI

Detroit’s home prices dropped more than 16 percent in 2008.

Home prices have fallen 16.42 percent over the past year in this Midwestern metropolis, as job losses fueled a flood of foreclosures on the market. But Detroit is committed to restoration and revitalization, as evidenced by its mix of historic districts and new developments.

Bargain Market #10: Washington, D.C.

The Washington, D.C., area saw home prices drop more than 12 percent last year.

The Washington, D.C., metro area — which includes the District as well as nearby commuter cities in Virginia, Maryland and West Virginia — is prime for bargain-seeking homebuyers. The area has one of the lowest unemployment rates in the country and boasts bustling nightlife and culture. With home prices down 12.15 percent over the past year, this may be the time to buy in the nation’s capital.

San Diego-based attorney Steven R. Kellman shared with the Union-Tribune on Thursday some perennial advice for renters in San Diego and beyond.

Kellman is the founder of the Tenants Legal Center (tenantslegalcenter.com) and an expert on the paper’s Rental Roundtable, which pens a column every week. (The Union-Tribune’s rental column is still on hiatus.)

Here are five routine things to know if you’re a renter:

1) Make sure you go through thorough move-in and move-out inspections. Use a checklist, paying special attention to possible stains or damage. If you can’t prove you didn’t cause them, you may be charged for them upon move-out. Also, be sure you leave the rental unit in the same condition you found it, or better, to steer clear of penalties.

2) Before you move-in anywhere, read the lease. Kellman says there’s often confusion about the basics including who pays how much rent, whether pets are allowed and how utilities are split. “So many tenants sign leases because they’re so happy to move in that they never bother to read it carefully,” he said.

3) Keep a rental file, which should include a copy of the lease, rental application, photographs of the unit when you move-in, and any communication between you and your landlord. If any situation arises, you will be prepared with records.

4) This is a continuation of No. 3: Document all communication with your landlord. Put in writing any complaints against your landlord or changes in the leasing agreement.

5) Upon move-out, Kellman highly suggests using a professional cleaning service. The receipt from the service serves as legal proof that the unit has been cleaned in case the landlord has any issues with the rental’s condition. “It’s just a one-time expense for a vacant unit,” Kellman added.

This article gives some general, but important tips to get through winter while selling your home.