I have to disagree greatly with the information in the new article. I'm a real estate investor here locally, not an agent, so it doesn't matter what the market is doing, I make money so I don't need it to look rosey or not. I don't understand this quote "Virginia Beach homeowners who bought homes this year possess a paltry 5.2% of home equity, and 34.5% owe more on their property than it's worth, according to Zillow.com, a real estate research group." How is it that all owners who bought this year already have equity? and 34.5% owe more than it's worth? You can't have both it's either one or the other. The biggest problem is when you categorize all home prices together as a lump and not separate price points. You buy a million dollar home and the neighbor needs to sell and prices it to 900k. Yeah, you're now underwater technically. But the same doesn't go in all neighborhoods. I do not agree with anyone buying this year actually having equity. But to go with Zillow figures is like buying stocks because your friend told you it's a good choice. Zillow isn't hardly accurate, that's why they have a disclosure about it. Every city is the best place to ride out a recession, provided your real estate is still affordable when compared with the median income of the area.
California real estate is dropping because really, who can make 75k a year and afford a 750k house? You can't, so prices drop back to more affordable prices. And if no creative loan products ever exist again, prices will continue to decrease in my opinion. If you can't find new buyers at higher prices you'll never sell your house and move to anything else.
So Virgina beach is fine to ride out a recession in, but Hampton Roads is horrible as far as a place to buy rental property that cash flows without putting a ton of money down. There are better cities where your return on investment is substantially higher than Hampton Roads, and it's not anywhere close.
I have a link to that forbes article on my website if anyone is interested, it's under Local news.