10 worst real-estate markets for 2009

The housing market hasn't bottomed out yet. For the third quarter, the closely-watched S&P Case-Shiller national home-price index fell 16.6%, and experts are predicting further declines. Of the top 100 markets, here are 10 with the worst forecasts.

1. Los Angeles

2008 median house price: $375,340

2009 projected change: -24.9%

2010 projected change: -5.1%

The median home price in the L.A.-Long Beach-Glendale metro area is projected to fall nearly 25% in 2009 - the biggest drop in the country.

2. Stockton, Calif.

2008 median house price: $248,050

2009 projected change: -24.7%

2010 projected change: -4.0%

One in every 94 homes received a foreclosure filing this November in this northern California market near Sacramento, according to RealtyTrac. Eight of the ten worst housing markets projected for 2009 are in California.



3. Riverside, Calif.

2008 median house price: $256,540

2009 projected change: -23.3%

2010 projected change: -4.8%

A popular boom earlier this decade fueled runaway prices for single-family homes in this market, which includes San Bernardino and Ontario, outside Los Angeles. Median prices are expected to fall to $197,000 in 2009, down nearly $60,000 from 2008.



4. Miami-Miami Beach

2008 median house price: $293,590

2009 projected change: -22.8%

2010 projected change: -6.4%

Miami will be nursing the hangover from its epic building boom for years to come. After falling 22% in 2008, prices are predicted to plunge another 23% next year.


5. Sacramento

State Capitol building in Sacramento

2008 median house price: $225,140

2009 projected change: -22.2%

2010 projected change: 2.3%

High jobless rates and low population growth are helping burst the capital city's inflated housing market. Prices are expected to fall another 22% in 2009, after tumbling 34% in 2008.



6. Santa Ana-Anaheim

2008 median house price: $532,810

2009 projected change: -22.0%

2010 projected change: -3.5%

Of the 100 biggest markets, this Orange County area, which includes Anaheim and Irvine, was the fifth most expensive place to live this year. But in 2009, prices are forecast to decline by $121,000.



7. Fresno

2008 median house price: $257,170

2009 projected change: -21.6%

2010 projected change: -3.3%

Fresno is located between Los Angeles and Sacramento, but it shared their housing woes. Prices in 2009 are expected to fall 44% from just two years ago.



8. San Diego

2008 median house price: $412,490

2009 projected change: -21.1%

2010 projected change: -2.9%

As the luxury condo boom continues to fizzles, median home prices in this southern California market are forecast to fall $87,000 to $326,000 in 2009.


9. Bakersfield, Calif.

2008 median house price: $227,270

2009 projected change: -20.9%

2010 projected change: -2.5%

This city north of Los Angeles had the ninth highest foreclosure rate in November, as one of the country's largest real estate bubbles continues to burst. Including Bakersfield, six of the ten worst foreclosure markets were in California.



10. Washington, D.C.

2008 median house price: $343,160

2009 projected change: -19.9%

2010 projected change: -5.7%

This market, which includes bordering Virginia towns Arlington and Alexandria, is cooling off from record highs. Forecasts call for median prices to slide 20% to $275,000 in 2009.

UK residential property prices fall again in April

Residential property prices in the UK fell slightly in April putting an end to optimisim that had been created by a small rise in March.

Prices fell 0.4% and the average price of a home is now £151,861 according to the April House Price Index from Nationwide, the country's larges building society. The price of a house is now 15% less than it was a year ago.

Nationwide had said after the March figures that too much should not be read into the small rise and now it is saying that recent measures announced in the Budget were unlikely to turn things around.

But it said that the extension of the stamp duty threashold might encourage first time buyers and this combined with falling prices should have some kind of effect on the property market.

The building society said the government could have done more to aid the availability of credit. 'The chancellor announced several measures aimed at boosting the housing market in his Budget,' said Fionnuala Earley, Nationwide's chief economist.

'The scheme for government guarantees for new, high-quality residential mortgage backed securities are welcome and may help to boost the amount of mortgage credit available. However, since the availability of credit is only part of the reason why the housing market is in the doldrums it is unlikely to lead to a swift turnaround in its fortunes,' she explained.

'Lenders have already indicated that the availability of credit is less of an issue than it has been, but at the same time expect that the demand for secured lending will fall further. Given the weakness of the economy and the expected further increase in unemployment this comes as no surprise,' she added.

Earley pointed out that the effects of unemployment would have an effect the property market is very sensitive to income and, as a result, conditions in the labour market are crucial to its performance.

'That said, the correction in house prices and improved affordability conditions provide a good grounding for the market once domestic and global economic conditions once again become more favourable,' she concluded.

Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors said the figures were not a surprise.

Real Estate 2009

Happy Holidays and a Great New Year Ahead - Realty stocks have been among the worst hit in the ongoing meltdown and a number of them registered losses. Despite so many bad market news, the fact is large-scale real estate investments are unlike a homebuyer looking to own a single property. Investors can move money more seamlessly between countries than an individual and investors also have a different way of calculating the long-term value of a particular property. Therein lies the appeal of investing in property in India.

Individuals look for price when buying a home along with expected appreciation and perceived value based on the location or the surrounding neighborhood. Long-term investors look for capitalization rate, the interplay between how much property costs and how much it can be rented for. Though Bank Shareholders and Equity Investors want less exposure to real estate, there are many growth opportunities in properties ranging from from apartments in Bangalore to office buildings in Shanghai. And some investors are buying aggressively.

While investors from pension funds in London to middle-class property speculators in New York are stung by problems in US residential real estate market, plenty of individual and institutional investors are gobbling up real estate in other sectors. A skyscraper like New York City's iconic Chrysler may not be in a normal investor budget, the timing might be right to follow such leads and make significant investments in certain cities around the world.

As markets change due to economic slowdowns, rapid growth or government policy, the important thing is to keep money in growing sectors. And if things go wrong, its time for the bargain hunter investors and opportunity funds to have their day and hence fortune tellers like Forbes, TIME, Fortune etc. had to recalculate net worth of billionaires, every year.

Importance of Real Estate Property Management

Good property management would not cost you money, in turn it would fetch you money. If a real estate investor has purchased an investment property, a single family home, duplex, a 4-plex or even larger multi family unit, the actual goal is simply cash flow. Depending upon the size of down payment and condition of the real estate property, cash flow may or may not become a reality.

These days real estate investors are interested investing in property with high leverage, normally properties that have a great deal of deferred maintenance. The new owner has to face the challenge of a lifetime and it would look like a lifetime before he would ever see any light at the end of the tunnel.

Good Property Management

A good property management company could be really useful to the investor who doesn't have time to dedicate to his or her real estate investment. A strong manager could be an actual gift to the investor faced with a huge number of problems including but not limited to upholding repairs and a large percentage of vacancies.

Property Management is not only about providing an apartment for an individual or a family investor. The property manager basically manages all sorts of services for the owner. Shelter is the understandable but along with that you have to comprise plumbing, heat, flooring, tile showers and tubs roofs, ceilings, walls, panes, kitchen appliances, water heaters, carports, garage door openers, fans, cabinets, landscaping, walkways, stucco, siding, fireplaces, brick, and many other noticeable things. Aside from all of the tools and materials that are used for a housing unit, your property manager should be able to manage people. Those people are your customers and they are the individuals, which would keep your building afloat. The good managers know who needs to be rented your unit and who shouldn't. The manager would do credit checks , confirm income and previous residence.

When the successful real estate investor is about ready to buy an apartment building, they would usually bring their property manager along for one of the good inspections before signing any deal. The purpose, certainly, is to gain some imminent from another perspective. Often the real estate investor would fail to notice certain aspects or characteristics, which the property manager might quickly recognize. The property manager might see signs of sober maintenance problems, which an owner might fail to notice. The experienced manager could point out some hazards or possible problems, which might go unnoticed. The job of the manager is not to dishearten a real estate investor from making the purchase, but to assist the purchaser see the whole package.