The entire year 2006 was probably one of the worst years for the real estate market in a very long time. Every viable market from 2005 was plummeting to the depths of all-time lows. Forecasters were appalled with the losses investors were shouldering and foreclosures reached a record high. Will the downward spiral continue or will we pull out of the tail spin and fly above the loss?
For 2007, Forecasters are not looking at the classic markets for gain. The focus will turn to market where cost of living and living cost relative to the nation is lower than average. Here are the 10 markets to look forward to in 2007.
With a population of nearly 180,000 people, McAllen-Mission, TX (actually made up of McAllen, TX and Mission, TX) is not what you would call a metropolis. The town is situated very close to the Mexico, TX border and has a median household income of nearly $39,000. The average home cost is $102,000 and is expected to rise by more than 18% by 2008.
This market is on the bubble and will begin to boom very quickly. If you want to make a pretty penny, get in now while the market is still on the downside.
EL PASO, TX
Another Texas city getting ready to flourish is El Paso. With a population hovering on the tip of 600,000, this next door neighbor to New Mexico is a much sought after city. The median income is about $37,000 and job growth is exponential. Currently homes are selling for around $109,000 but should have an appreciation of around 12% within the next year.
Again I must stress that this market is on the bubble. Getting into the real estate business and investing here will only bring you gains.
Bugs Bunny is realizing he should have just stayed in Albuquerque instead of taking a left. This market is prime for investing. Located in the middle of the state, Albuquerque’s population of 482,000 people makes it a large city. The beautiful weather and laid back lifestyle brings many visitors each years and with a population growth of around 8% last year, it seems a lot are staying. The median income of $45,000 puts it above normal, but the cost of living remains lower than the national average. Homes priced at the average of $217,000 can expect to sell for about $230,000 by 2008; an increase of over 6%.
Even though this market is not looking to make you rich, quick, with the steady growth in both population and median income, an investment here will continue to increase in value year after year.
SALT LAKE CITY, UT
Located on the northern side of Utah, Salt Lake City has been the home to the Olympics. And looking at the real estate upturn about to happen, some of them staying. The population in Salt Lake has held a steady for the last year at around 180,000 people but the housing costs have risen over 15%. People may not be moving into the city at blazing speeds, but the ones who are moving in, want tho buy there very badly. With a median home cost of $203,000 last year and an expected growth of over 6%, you still have time to get into this great market.
Salt Lake’s housing market has been growing for years now. There is no evidence of the growth stopping anytime soon. Great Market, Great Opportunity.
SAN ANTONIO, TX
We just can not seem to leave Texas alone. To use the old cliche, maybe everything, including the real estate market is bigger in TX. Average home prices last year were around $100,000. For a city with a population of over a million and median income of $42,000, this is unreal. Forecasts are showing if you were to buy a house at $100,00 today and sell in at the peak of the market in 2008 you would make over $8,000 in profit (8% expected growth).
Again, this market is not one that will make you rich quick, but for people wanting a sure deal buying in this market, renting for a few years and then selling can only put a positive on the bottom line.
Finally leaving the Midwest and moving eastward, Rochester, NY is looking forward to the gains about to take place. The population 213,000 people have not moved much over the past few years, but the real estate market is priming itself for some serious gains. Median home costs have rose from $90,000 to $96,000 last year alone and is expected to rise again another 8%. With steady yearly growth like this, the gains will be compounded year to year and your investment will multiply itself in no time.
With a cost of living over 15% lower than the national average, people can afford to pay more for home in Rochester and they are just now realizing this. Getting in on this market while its growing will be as easy as making money.
BATON ROUGE, LA
Southern hospitality is something no storm can drown away. Baton Rouge may still be recovering from the effects of Hurricane Katrina, but people who love the south, simply love Baton Rouge. The population in this devastated area has declined a bit over the last year but is holding strong at 215,000 people. And while people are not moving into the city at a great rate, yet, they are buying homes. The average home price in 2006 was $133,100 and will rise to over 7% by the year 2008.
As Baton Rouge recovers and rebuilds people will move back. This forecast is a conservative one. People will be buying homes and rejoining this vibrant society at a faster rate in the next year and getting into the market now will not only help them to make Baton Rouge a city again, but make you some money on top of it.
FORT WORTH-ARLINGTON, TX
Here we go again, of the top 10 real estate forecasts for the next year, Texas takes four spots. The Fort Worth-Arlington area is no different. The twin cities hold a combined population of around 1,000,000 people and amidst beauty and wonder has managed to keep the median home cost at an unbelievable $130,000. Being minutes from the life, luxury and business of Dallas, TX it was just a matter of time before people realized this diamond in the rough. Over the next year you will see the market soar and at least an 8% rise in home value.
Texas seems to be all over the real estate world. The businesses and industries of Texas are booming and getting into the market now will make for great experiences.
The finally city to watch is Birmingham, Alabama. Even though many would not even think of placing any city in Alabama on a fast growth forecast, I know this one will be a winner. Great weather, positive job growth, negative population and extremely low cost of living will only bring in the crowds. In real estate investors are always looking for he undiscovered wonder and I believe Birmingham is just that. The average home price of $98,000 shows a growth last year of 7% and is not stopping there. Market watchers are expected another 7% growth this year and for years in the future as well. At 7% a year, you will make a huge profit in no time at all.
Birmingham is a small city, with small town values. When looking for a place to invest, take into consideration where you would want to raise your family. This town is a great place, to live, work, and breath. Great period.
With the baby boomers retiring, we must look into the real estate market for the wave of the future. The time for get rich quick sales is over, now we are settling down and putting time and money into our investments. Sure, there will still be markets that unexpectedly show a 25-50% growth in home prices, but if you are looking for home the average joe can buy and hold onto for a few years, before selling and making a SURE profit, these are the picks for you!