CNN Money recently published an interesting article on the best and worst cities for real estate investing. According to the article…

"The real estate slump could get worse before it gets better. But these 10 markets offer great opportunities for those who have the patience to buy and hold."

The Best Cities to Buy Real Estate

• Panama City, FL
• Vero Beach, FL
• Bridgeport, CT
• Lakeland, FL
• McAllen, TX
• San Luis Obispo, CA
• Wilmington, NC
• Manchester, NH
• Fort Collins, CO
• Atlanta, GA

The Florida cities (Vero Beach, Panama City, and Lakeland) seem a bit suspect. Florida is generally regarded as one of the "bubble" markets. I wonder what criteria CNN used to create this "top 10" list.

The Worst Cities–Avoid Buying Real Estate Here

According to CNN, the 10 cities listed below are overvalued, and home prices are expected to drop over the next year.

• Stockton, CA
• Merced, CA
• Reno/Sparks, NV
• Fresno, CA
• Vallejo/Fairfield, CA
• Las Vegas, NV
• Bakersfield, CA
• Sacramento, CA
• Washington, DC
• Tucson, AZ

Six locations in California made the list, including Reno/Sparks, which is just across the border from California. The remaining cities have reputations for high investor concentrations.