Since the real estate bubble first burst, experts have been trying to determine the end of the housing devaluation trend, and the news does not look promising. The media has been reporting that by years end more than 1 million properties will enter foreclosure. That number will exceed the previous foreclosure rate record set in 2009. Aside from those sad statistics, the average home price is expected to decrease over the next two years across the nation.

Best Home Buying Markets

Luckily CNNMoney.com has spotted some life preservers in an otherwise murky sea of real estate opportunity. According to the source the following cities stand the best chances of recovery compared to anywhere else in the country:

• San Francisco, California, Median Home Price $675,000: The City by the Bay is the state's fourth most populated city. The city is teaming with culture, gourmet food, public transportation, trolley cars and the Golden Gate Bridge. Even though San Francisco property values retracted along with the rest of the nation, people still want a piece of the local pie. Demand is far outweighing the availability of affordable properties in the city. CNNMoney.com has reported that available properties have"... already dropped by nearly in half over the past year," thus generating an expected home value increase of 4.8 percent in 2011.
• Seattle, Washington, Median Home Price $371,000: Seattle is not only the northernmost major city in the continental U.S.; the city is also the largest in the entire state. Seattle bustling economy has fared better than other regions in the nation thanks to Fortune 500 companies such as Starbucks, Amazon and Boeing. It is the desire to find work that is fueling the trend of relocating to The Emerald City. As a result, experts predict that local home values will increase by 3.8 percent by the end of 2011.
• Pittsburgh, Pennsylvania, Median Home Price $122,000: Steel City is Pennsylvania's second largest city, even though the area has been affected by a mass exodus. Since the 2000 census, Pittsburgh's population has decreased by 3 percent. The local economy is healthy and is stimulated by booming service industry. It is those factors that has lead the source to predict a 2.2 percent increase in home values over the next couple of years.
• Rochester, New York, Median Home Price $119,000: Decades ago, Rochester earned the nick name of being the "The World's Image Centre" thanks to the headquarters of Eastman Kodak and Xerox. Those companies still have offices in town as well as other Fortune 1000 businesses. According to the source, Rochester was never affected by the real estate boom therefore the bust never really hit them. The slow and steady approach to the local real estate market has experts estimating a 2.2 percent increase in their local markets.
• Memphis, Tennessee Median Home Price: $108,000: Since Memphis was good enough for the "King"; it is certainly good enough for the rest of the nation. Local home values are expected to increase by a nominal 1 percent over the next couple of year. That is certainly better then a hot poker in the eye.

Why Buy a Home Now

Seventy-two percent of all Americans believe that homeownership is still part of the American Dream (Trulia.com) and thanks to the combination of historically low mortgage rates and surplus of inventory, the time for pursuing the goal has never been better. Additionally, new information released by Credit Suisse has shown that the cost gap between renting versus buying has narrowed and tipped the scale in the favor of buying in many markets.

The Credit Suisse report focused on the future growth of real estate investment trusts and involved cost analysis. Within two different metro regions, the cost of owning a condo was compared with renting a comparable apartment a couple of blocks apart. Monthly rent, mortgage payment, tax implications, homeowners' association dues, were juxtaposed with 30-year fixed-rate mortgage (FRM) and a 5/1 adjustable rate mortgage (ARM), each with a 20 percent down payment. In the Stamford,California markets the results have shown that the expenses between renting and buying are fairly close and buying may be the better option.

Other Housing Markets To Consider Buying

New research provided by the Metropolitan Regional Information Systems (MRIS) and Delta Associates have shown that Several metro D.C. housing markets are officially rebounding, and that info can take the worry out of the home buying game. Despite the positive movement occurring in some housing markets, it is up to each individual to fully evaluate the local real estate market and make a final commitment to homeownership. Consumers interested in hopping on the local home buying bandwagon, can find low mortgage rates on Mortgage Marvel.