Looking Back: Best and Worst Performing Real Estate Markets of 2008

It’s no doubt that 2008 will be remembered as an all around terrible year for consumers, Wall Street, and most of all, the US housing market. In fact, much of the turmoil in the economy could be attributed to the collapse in home price values at the end of 2007. From there, a lack of credit and liquidity continued to squeeze the housing market in a death grip. But as they say, “real estate is local,” and not all markets experienced a massive decline. Here are the best and worst performing real estate markets for 2008*:

Best performing
1. Dallas (-3%)
2. Charlotte (-4.4%)
3. Denver (-5.2%)
4. Boston (-6%)
5. Cleveland (-6.2%)

Worst performing
1. Phoenix (-32.7%)
2. Las Vegas (-31.7%)
3. San Francisco (-31%)
4. Miami (-29%)
5. Los Angeles (-27.9%)

Most analysts believe the housing market will bottom out in late 2009, with a minor recovery starting in the first quarter of 2010. This is unlikely due to the growing deficit, lack of consumer confidence, and the newest economic problem, rising unemployment.

As with any investment, housing remains as risky as ever. There are certainly great deals to be had on homes. Some banks are even selling rehab homes in the Detroit and Cleveland areas for $1000, just to avoid paying property taxes and unloading them from their balance sheets. But remember, just because some areas have seen double-digit declines does not mean it is anywhere near the bottom. Make sure you protect yourself and your credit in these tough times by getting a free credit report from GoFreeCredit. You’ll be able to see what lenders see in advance, and this is especially important if you are considering a home in the near future.

*Data taken from the latest available Case-Schiller Index report last published October, 2008