While the housing sector recovery appears to have stalled in the wake of a government shutdown, there is no denying the ground that has been made up since the bubble crisis. Real estate, on a national level, has experienced significant improvements over the last six years.
On our return to “normalcy,” however, distinct markets have been more conducive to our current situation. Five markets in particular placed us on the path to recovery, each of which are predicted to remain active. Investors intent on taking advantage of these hot markets should familiarize themselves with the following:
Miami, the home of South Beach and year-round tropical weather, has been the beneficiary of a fairly stable housing market. The same amenities that attract tourists from around the globe make the metro a desirable place to live. Accordingly, current market conditions have reduced the amount of homes that are available. Those that are listed come with a price tag that is approximately 4% larger than this time last year, suggesting that demand trumps supply. Perhaps even more appealing, however, is the steady decline in mortgage rates. Lower mortgage rates across Florida have convinced prospective buyers to actively participate in the market.
It was not that long ago that Las Vegas was relegated from real estate relevance. However, those familiar with the region are well aware of its current trajectory. Homes in the desert oasis have surged by more than 22% in 2013 and show no signs of slowing down. Analysts predict homes to continue climbing at a rate of 7.5 percent. Affordable mortgage rates are also expected to provide an encouraging boost. According to AmeriSave Mortgage Corporation, rates are well below pre-bubble days at just 3.75 percent, compared to 6.5 percent in 2008.
Even more encouraging, however, is the rate of unemployment, which is currently just under 10 percent. The two percent drop from a year ago may encourage more families to actively participate in the housing resurgence, making it a hotbed for investor activity.
San Francisco, like much of California, has played a pivotal role in the nation’s recovery. However, unique to the Bay Area, is the forecast of a 10% increase in home prices. This is on top of the 21% increase San Francisco has already experienced in 2013. Currently, the average home in this region costs approximately $563, 200.
Despite the relatively high price range, sellers are finding that selling a home is easier than expected. In fact, July sales reflected an eight-year high. Sellers are eager to participate as a result.
According to the Los Angeles Times, the median price for home sales in the Bay Area was around $562,000 that month, which was 1.3% more than the month prior, and a stunning 33.5 percent more than in 2012.
Despite having been victimized by Hurricane Katrina eight years ago, New Orleans is a trending market. In fact, the void left by the natural disaster was filled with approximately $424.7 million of commercial real estate in May. That number indicates a 41% increase from the previous year and serves as an encouraging sign as to the trajectory of their market.
The rise in commercial interest had a similar impact on residential real estate, making the city more attractive to investors and prospective owners.
Twenty-five thousand people have moved to the city since 2010 and the number continues to rise. New Orleans is in a state of revival and comeback, and anyone who lives there can feel the spirit.
Houston’s recent success in the housing sector may be attributed to its job market. The Texas city is currently experiencing record job growth, as it is the fifth highest area out of the 100 largest metros in America. Supporting this trend is the rate in which home prices are appreciating. In June, the median price for a home reached its highest level since 2008. Sales also increased 1.2 percent, an increase many cities wish they were the beneficiaries of. With jobs becoming widely available and fewer homes being on the market, Houston is poised to become a very competitive market.