The Lakeland-Winter Haven Metropolitan Statistical Area topped the list in a report of cities where it was least wise to invest in a home.
We asked LMM for the top ten markets where it was least wise to invest in a home. Lakeland topped the list in part because second-home and speculative investing was rampant there during the boom. The practice drove prices up artificially, giving them a long way to fall. — Francesca Levy, Forbes
LMM selected markets with a population over 40,000. The areas were ranked based on job forecasts, population growth and home-price changes.
The list of ten cities includes Florida markets Orlando-Kissimmee, Daytona Beach-Deltona, Ormond Beach, Port St. Lucie, and Fort Myers-Cape Coral. The list rounded out by two Nevada markets and cities in Micigan, Idaho and Arizona.
“I’m a bit surprised there are no California markets in this list,” says LMM president Ingo Wizner. “But the California markets by and large have hit bottom, and the Florida, Nevada and Arizona markets have not. Probably because the latter had so many ‘investor’ properties.”
According to Wizner, cities who made the list were “investor markets” where home buyers were speculating on home prices through the purchase of second homes. He stated the poorer markets have less organic demand for housing when speculation is removed.
Glittering ponds or no, you should not buy a home in the Lakeland-Winter Haven Metropolitan Statistical Area if you’re interested in selling it at a profit any time soon — Francesca Levy, Forbes
• America’s Best Housing Markets For Investors – Forbes
At the other end of the spectrum, Lakeland, Fla.; Reno, Nev.; and Orlando are the absolute worst real estate markets into which you could put your money, with LMM calling them “frankly dangerous.” Home prices in these metros have dropped to dramatic lows–in Lakeland, they fell 18% between the second quarters of 2009 and 2010. Worse yet, they are forecast to continue declining. America’s Best Housing Markets For Investors – Forbes, Sept. 10, 2010