Published May 29, 2020
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17 U.S. Markets Lost Value Year-Over-Year

Currently, 17 markets (4% of ALL U.S. real estate) experienced ‘real’ (inflation adjusted) declines in property values over the last year.

In the previous quarter, 28 markets had annual home price declines.

Although the number of declining markets is low by historical standards and remains at fairly healthy levels…

The California Market Continues to Nose Dive.

In last summer’s article: “First Major U.S. Markets to Turn Negative” we highlighted how two MAJOR West coast markets, San Francisco and Seattle, fell out of their Wealth Phase  along with a few other California markets. That trend is continuing; EIGHT (8) major California markets have exited their Wealth Phase in the last few quarters.

(If you don’t know what a Wealth Phase is, you can read about it here. It’s a BIG DEAL when a major market enters or exits a wealth phase.)

(See the entire list of declining markets below.)

In addition to the list of declining cities below, we also use our Advance-Decline (A-D) Indicator that aggregates and tracks Market Breadth.

‘Market Breadth’ is a technique used in Technical Analysis (TA) that attempts to gauge the direction of the overall market by analyzing the number of markets advancing relative to the number declining.

Changes in Market Breadth can act as early indicators for changes in the market cycle.

Here’s what the Year-Over-Year Advance-Decline
data looks like for the overall National market.

Advance-Decline Momentum Indicator vs Home Price Appreciation Chart Year-Over-Year 1976-2018

#1 – When the red chart line is inside the green zone it’s a bullish – or positive – outlook on the overall market.

#2 – When the red line is in the middle zone it’s telling us there is no strong bullish or bearish direction; you must rely more heavily on market-by-market selections.

#3 – When the red line is in the bottom (red) zone, it indicates substantial weakness in the overall market.

This A-D Indicator can also be used on State and Regional levels for more granular insights. PRO level members can customize this Advance-Decline tool by logging in and visiting: Real Estate Market Breadth Analyzer.

Below is the list of cities with
declining Year-Over-Year home prices…

List Showing 17 U.S. Markets Lost Value Year-Over-Year

Historically speaking, having only 4% of all U.S. markets in decline typically indicated a healthy overall U.S. real estate market.

But… these are not normal times.

Because of COVID-19 it could go either way in the coming months and quarters.

Investors need to pay close attention.

The only accurate way to analyze and anticipate local real estate market moves, especially in times like this, is with Technical Analysis (TA) and HousingAlerts.

‘Market Psychology’ will decide which markets are winners or losers, and only TA can track that driving force.

If your markets are on this list, DON’T panic!

ONE data point, whether it’s for a Quarter or a Year, doesn’t necessarily mean it’s time to buy, sell or hold… or do ANYTHING different, other than pay closer attention. That’s where Technical Analysis (TA) comes in.

TA is a 500 year old science to help predict future market swings. TA is used by every Wall Street investment bank and every global stock, bond, currency and commodities trading firm on the planet for TRILLIONS of dollars in DAILY trades.

We invented TA for local real estate
markets and have the most accurate local
market cycle predictions on Planet Earth

If you want to maximize your Investing, Wholesaling and Flipping profits while minimizing risk, capital and effort in ANY U.S. real estate market, you need to invest WITH the market. Come join us and enter the world of Intelligent Investing.

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