TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/644700
TH E M R EP O RT | 7 MDWELL A new study by Trulia found that properties listed as "bargain buys" in nearly half of the country's largest markets are actually nothing of the kind. "To no surprise, we found that not all properties listed as bargains are actually a good deal," said Trulia econo- mist Ralph McLaughlin. "The B-word gets thrown around a lot in real estate. But talk is cheap. And clearly, not all properties follow suit." In fact, Tulia found that properties described as bargains are actually listed for appreciably lower prices in only 55 of the 100 biggest U.S. housing markets. Whereas there are some genuine bargain markets, too many markets throw words like "bargain," "value," "deal," "under-valued," "fixer-upper," and "underpriced" around rather loosely for Trulia's tastes. Perhaps unsurprisingly, seven of the 10 least bargain- friendly markets are along the already pricey coastal areas on the West Coast and in the Northeast. However, investors and homebuyers looking for actual bargains can still find them in the Bargain Belt (a Trulia-term for markets in the South and Midwest) where discount properties are on average 10 to 20 percent less than median sale prices. HOUSING MARKETS WITH THE LARGEST PRICE CUT ON BARGAIN HOMES DAYTON, OHIO Dayton, Ohio, the birthplace of aviation, takes first place with the largest discount on a bargain home at 19.6 percent. With a median listing price of $116,900, investors could save $22,900 on a Dayton home. TOLEDO, OHIO Not far behind is Toledo, Ohio— known for its arts, education, healthcare, and local sports teams—with savings of 18.1 per- cent, or $19,848 on a lower priced home. The median listing price in this city is $109,900. KNOXVILLE, TENNESSEE Investors can get more than just some good Southern hospitality in Knoxville, Tennessee. Here, inves- tors can get an extra 12.8 percent or $21,831 off a median priced home, typically listed at $169,900. BUFFALO, NEW YORK In Buffalo, New York, where snow reaches ridiculous heights, investors can save an additional 12.4 percent off a median priced home of $138,888. This would provide a potential savings amount of $17,186. OMAHA, NEBRASKA Lastly, investors should not over- look the 41st largest city in the U.S., Omaha, Nebraska. Potential savings on a home can amount to 11.5 percent or $18,267 off a me- dian priced home of $159,000. Investors Take Heed Some Bargains Are Not What They Seem Source: Trulia Blog, "Where Is A 'Bargain' Really A Bargain?" HOUSING MARKETS WITH THE SMALLEST PRICE CUT ON BARGAIN HOMES RIVERSIDE-SAN BERNARDINO, CALIFORNIA Don't expect to get much of a deal on a home in sunny Riverside-San Bernardino, California, with only a 2.1 percent or $6,480 price cut on a $310,000 home. SEATTLE, WASHINGTON In Seattle, Washington, investors only save 2.8 percent or $11,685 on a median priced home of $419,950. No wonder Seattle is known for gloominess. PORTLAND, OREGON Portland, Oregon, doesn't offer much of a deal on a home either. Investors will only see a discount of 3.0 percent or $9,238 off a median price of $312,000. ORANGE COUNTY, CALIFORNIA Yet another California city made the list with little-to-no discount for investors. In Orange County, California, buyers could only save 3.3 percent or $23,954 off a home at the median sales price of $725,000. MONTGOMERY COUNTY-BUCKS COUNTY-CHESTER COUNTY, PENNSYLVANIA Montgomery County-Bucks County-Chester County, Pennsylvania, wraps up the bottom five list of homes that offer the smallest discount of 3.3 percent or $10,815 on a home that costs $324,900. KNOXVILLE, TENNESSEE PORTLAND, OREGON BUFFALO, NEW YORK ORANGE COUNTY, CALIFORNIA