6 of 10
BACKNEXT
Myrtle Beach, S.C.
Foreclosure rate: One in every 62 homes
Percent increase: 280%
National rank: 89th
Unemployment rate: 13.3%

The real estate market in this resort town has always been mostly second homes. A few years ago, 85% of sales were for investment or vacation homes, according to Coldwell Banker Chicora real estate agent Rod Smith.

"We saw a lot of flipping," he said. "And a lot of flippers got caught when prices went down."

Many of those speculators were buying ocean-front condos with nothing down and when the market cooled they could not pay the mortgages. The result: a 2,127% rise in foreclosure filings over the past two years, and home prices have fallen between 15% and 20%.

In addition, Myrtle Beach's tourist economy has been hit hard by the recession, with unemployment climbing to 13.3% in November from 9.8% 12 months earlier.

The snow birds still arrive, according to Smith, but these northern retirees escaping the cold are not big spenders.

NEXT: Honolulu, Hawaii
Last updated February 01 2010: 3:46 PM ET
Email | Print | Share  |  RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
More Galleries
8 must-have travel apps Whether you've got wanderlust or an airline grievance, here are some apps to pack onto your phone. More
Hot stocks: 10 record breaking companies The S&P 500 is trading at all-time highs, and many well-known businesses are leading the charge. Time to buy or sell? More
My biggest retirement mistake Five CNNMoney readers share stories about saving that you can learn from. What they would do differently if they had another chance. More

Special Offer
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.