Stay the heck out of Sacramento, California. Wow.
I thought we were in bad shape here in Indianapolis when our foreclosure rates placed us #1 in the country, but even then we weren’t experiencing anything like that of what the poor home owners of Sacramento are suffering right now. Their home prices were severely inflated, like everywhere else in California, and now their values have dropped 4.3% from one year ago. That means at an average sales price of $362,660, Sacramento home owners lost about $16k of their equity in the past year.
So, here’s my idea: avoid investing money in an area where prices are inflated, values are decreasing and positive cash flow isn’t anywhere in sight.
Tuesday’s Tip: Avoid “sucky” markets.
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