5 Cities That Aren't Seeing a Housing Recovery
No. 2 lagging market: Allentown, Pa.
Billy Joel once sang about Allentown's hard times, and the 821,000-person metro area's problems certainly extend to its housing market.
Blomquist says one of the most telling signs of trouble is the fact that institutional investors account for just 4% of Allentown's home sales, or less than half of the 9% rate nationwide.He sees that as an indication that the large private-equity funds that are pouring big bucks into the U.S. housing market these days are skipping the community even though it's just 90 miles west of Wall Street. "Allentown just isn't a place where these Wall Street-backed investors are looking or think is a good market to invest in," Blomquist says. The community has also seen a below-average 41% drop in foreclosure filings, while median home prices have rebounded just 9% after bottoming out this past March. That's less than half of the typical recovery seen nationwide.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV