Detroit may be bankrupt, but the city is full of opportunities for real estate investors, according to one expert.
"The local economy, despite the fact of course there was a huge bankruptcy, is improving relative to the rest of the country. So it's almost like it can't get any worse," said Tim Rood, partner at the Collingwood Group, an investment advisory firm.
The Motor City is one of Rood's top five real estate markets to invest in based on actual home prices, asking prices foreclosure rates and other factors. Atlanta, Ft. Lauderdale, Portland, and San Francisco are also some of the top real estate markets, according to Rood.
Home prices in those areas fell about 40 percent on average from their highs, peak to trough, Rood said. And inventories are the tightest in Detroit compared with the other cities listed in Rood's top five. Detroit only has two months of inventory available for sale, while there's about seven months of inventory in Ft. Lauderdale, for instance.
Meanwhile Mobile, Ala., one on the worst housing markets to invest in, according to Rood, has about 19 months of inventory.
Along with that region, Chicago, Charlotte, N.C., Philadelphia and St. Louis are among the worst housing markets to invest in right now, according to Rood.
"Chicago is another one of those situations where they had ... about a 35 percent drop [in home prices]. They did participate in the housing boom, relatively, but the recovery has been ... pretty anemic. It's suffering from just a persistently high unemployment rate and one of the highest foreclosure rates in the country," Rood told "Big Data Download." "So you can see how there would be a backlog of what would be shadow inventory just waiting to add to what's already about eight or 10 months’ worth of inventory.”
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