Best market? Until prices drop enough to line up with the Rent/Own Ratio and Median Home Price/Median Income Ratio, this market is far from best. The housing bubble should have popped two years ago. However, to keep things going, mortgage lenders started handing out toxic adjustable rate mortgages. And like consumption addicted hypes that they are, the American populace continued to buy far past their purchasing power. Now the chickens are coming home to roost and foreclosures are up.
By Matt Woolsey, Forbes.com
June 25, 2007
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The easiest way to judge our list is to examine the area's housing supply vs. demand. A good measurement? Take the current rate of sales and figure out how long it would take to burn off the excess inventory at that rate.
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Likewise, Chicago, at No. 5, has felt the effects of a housing supply growing in excess of demand. Brokers there say it's been a slow year thus far, and Moody's data supports that. Chicago ranked seventh worst for listings outpacing sales and fifth worst for the tightening rate of the market.
Because prices are still too high, the market is in a standstill. What will start the fall?
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