4. Merced, CA
Home price forecast (1 year):* 4.4%
Many industry observers may be surprised to find Merced on the list of cities where prices are forecast to grow this year. The Central Valley area is still being battered by brutally high foreclosure rates: One home in 10 received a foreclosure filing last year. Unemployment is also extremely elevated, a 19.8% rate in December.
Perhaps home prices have fallen as far as they can go; they've dropped a whopping 73% from their 2006 high, including more than 22% last year. The median home sold for $113,000 in 2009, an affordable 2.4 times the median household income. Is this a good time to buy a home in Merced?
| ||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
