5 Worst West Coast Cities To Buy Property in the Next 5 Years
We all know the West Coast for its sunny beaches and tech giants, but not every city out there is a real estate goldmine.
Our partner GOBankingRates spoke with Chris Wesser, who founded Redy, a website that helps people sell homes, about which West Coast spots might be more trouble than they're worth for property buyers in the next few years.
Wesser is straight-forward about how tricky it is to predict this stuff. He said, "Predicting which real estate markets will be hot or cold 5 years from now is exceedingly complex, but investors can increase their odds of success if they develop a methodology and stick to it when making investment decisions." Here are five West Coast cities Wesser identified as potential headaches for property buyers.
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Oakland, California
Oakland's biggest problem? Jobs are leaving town.
When tech, manufacturing and banking jobs disappear, it usually means home values will drop unless something else picks up the slack. Not great news for the housing market.
Seattle
You might be surprised to see Seattle on this list. Wesser said it's because home values are relatively high, but there's not enough good stuff happening to keep those prices up.
Basically, Seattle's houses might be too pricey for their own good.
Eugene, Oregon
Eugene's got its perks, like gorgeous scenery and a big university. But it's struggling to grow steadily, which could spell trouble for anyone looking to buy property there.
Fresno, California
Unfortunately, Fresno is also on this list. The central Californian town has been dealing with some difficult money problems as of late.
This could mean not enough jobs, low wages or too many houses and not enough buyers. Before you invest in Fresno, make sure to do your own research.
Las Vegas
Vegas is known for gambling, and its housing market might be a bit of a gamble too.
Wesser says home prices are relatively high, and that could lead to a more difficult market in the upcoming years. Also, since Vegas depends so much on tourists, its housing market could be in for a wild ride.
The Final Word
All that said, Wesser still suggested doing your homework before you buy. Start by making a big list of places you're interested in. Then dig up info on stuff like jobs, how many people are moving in or out and what kind of houses are available.
Remember, even if a whole city's having a tough time, some neighborhoods might still be doing great. Before you buy anywhere:
Check out the job situation
See if more people are moving in or out
Look into any big projects the city's planning
Figure out if there are too many or too few houses
Think about what the area might look like in 10 or 20 years
Wesser's bottom line? The trick is in how you make sense of all the info you gather. So do your research, talk to people who know the area and think hard about what you want out of your investment.
The West Coast has its share of challenges, but if you're smart about it, you might just find a diamond in the rough.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal, or tax advice.
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