Investing in your neighborhood not sounding as exciting as it once did? According to Money magazine:
Yes, even amid the housing crisis, parts of the U.S. are still expected to post price gains in the coming year, according to Money Magazine. Here’s where to look…
Money presented their choices in a slide show. For your convenience, I summarized their picks in a table:
Based on foreclosure rates and the past year’s performance, I suspect some of those projections are optimistic. Even if they are dead on in their forecast however, buying strictly on appreciation is a hard sell.
There are still reasons to invest in real estate, but just because a property is in one of these "hot" markets isn’t one of them.
Ohio Fraudclosure
Mish's Global Economic Analysis
Northern Virginia Housing Bubble Fallout
UK House Bubble
Bubble Meter
Breaking News Relevant Articles© Copyright 2012 Housing Doom | Copyright© 2011, AuthentiCraft, Inc.
Looking at the bottom five, you see huge appreciation drops (a downward price trend – sound familiar?), large increases in foreclosures, and New Orleans (enough said there). This is just a list of everybody late to the party. Don’t worry, they’ll show up.
Another interesting note: Adjust that table for inflation and only #1 retains positive appreciation. Adjust it for real (versus reported) inflation and I bet none do.
Sandman-
I had the same thought on inflation.
I think that the days of making money on a property, any property, in a “hot” market are gone. Properties now have to be judged on their own merits for their investment potential.
Money magazine has been known for being an eternally optimistical kind of publication.
McAllen, Texas? Heard of……not.
Birmingham, AL? Gee, I’ve always wanted to move to a town 30 days before it declares bankruptcy.
Syracuse, NY? 400 feet of snow every winter and no jobs. Sure, why not?
Scranton, Grand Rapids, Baton Rouge, El Paso? What the heck are you going to do to live in these towns?
Where they come up with this stuff I have no clue.
Igor says: no idea
I have been to most of those places, and would never live in any of them. Maybe a lake home outside Grand Rapids. I think that’s the reason they may be “going up” – most of them never went up during the boom. I mean, welcome to the rust belt.