With stronger employment numbers and relatively depressed housing and rent prices, the conditions are right for real estate investors to do well. When deciding on what market to invest in, it is important to do research. You have to consider whether or not properties in an area are overpriced or affordable, the demographics of an area, and the local employment conditions. In researching, some cities, which one would think is a no-brainer, didn’t make any of the top lists. To be a smart investor, look for markets on the rise or ones which the market has been steady. It can be all too easy to get sucked into investing in the current hot market. There are also real estate investment firms, such as Integrale Advisors to help walk you through the oftentimes tricky investment journey. Below, Keith Knutsson, CEO of Integrale Advisors, lists the top five U.S. real estate markets to invest in:
According to Investopedia, Georgia’s capitol city’s house prices fell 38% from their peak prices in June 2007. Prices still continue to decline with a 12% decrease over the last year. At around $109,000, housing is very affordable. Rent in Atlanta is also affordable, with the average rent being around $1,100 a month. Dallas/Fort Worth Unlike most major housing markets, Dallas didn’t experience too severe a fallout during the housing crisis. During the housing fiasco, home prices here fell a mere 16% in 2007. Since then, the housing market has rebounded. According to Forbes, Dallas has experienced a 6.2% population growth, 3.5% job growth, and an 11% home price growth. The home prices in Dallas remain underpriced by 5% and are expected to increase by 33% over the next three years. Tampa While Miami is a popular hotspot among investors, even bringing in the interest of foreign investors, Tampa has gone largely unnoticed. The influx of investments helped Miami recover from its housing crisis. In Tampa, however, prices remain low with the current average price of $103,000. These low prices make Tampa one of the most affordable housing markets in the country. The population growth of Tampa is around 3%, with a 2.6% job growth and a 9% growth in home prices. Housing prices for the area are expected to grow by 25% over the next three years, according to Forbes. Charlotte With home prices averaging at $220,758, making the price under-valued by 10%, Charlotte, North Carolina is a largely affordable housing market. The area is experiencing a 5.5% population growth and a 3.6% job growth and a 6% house price growth. Seattle Much attention has been brought to this Pacific Northwest city due to a booming job market facilitated by the presence of big companies such as Microsoft and Amazon. Unlike other major tech hub cities like San Francisco and San Jose, where the housing market is highly over-valued, the house prices here are only 4% over-valued, making them still a great deal for investors and home-buyers. According to Forbes, the average home price in Seattle is $370,300 and prices are expected to increase 22% over the next three years. Real estate investing involves a lot of research and strategy, but can be very lucrative. Keith Knutsson and his team have many years of real estate investment experience which they would gladly share with you to help you make sound, lucrative investment decisions. This past January home sales plummeted to their lowest level in the last 18 months. Shortages in property sales can be attributed to higher mortgage rates and prices. There was a 5.1% drop in the sales of previously owned homes, and $188,900 was the median sale price, a 10.7% increase from last year! (WSJ, Home Sales Fall to 18-Month Low Amid Low Inventories). Foreclosing properties have become a goldmine for rich investors looking to press their advantages. Severe weather nationwide has also been a cause of higher prices, and less willing buyers. The low supply of available houses is also doing a lot to hurt the market. In January only 1.9 million homes were seen on the market, among the lowest numbers in the last 12 years. There has also been a large drop in the amount of house construction going on, fewer than 570,000 new single-family homes were constructed last year. This number is far below the 1.1 million average of the years 1990 through 2003 (WSJ, Home Sales Fall to 18-Month Low Amid Low Inventories). The still recovering real estate market needs a major turn around. Keith Knutsson, real estate consultant writes on the worrying housing situation that lies before us.
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October 2018
CategoriesAll Investing Keith Knutsson Real Estate Real Estate Investing |