Taking Advantage of Affordable Housing Markets in 2013
Anyone who has thought about purchasing or selling a home over the past several years knows that home sale prices fell significantly once the housing market “bubble” burst. Across the nation, home prices dropped by an average of one-third from where they were at the beginning of 2007. Although experts cautiously tell us that home values finally hit rock bottom and are on the way back up, there are still some incredible deals out there today for anyone who is interested in investing in real estate.
This year may be an opportunity for new investors to enter the real estate market and/or for veteran investors to scoop up additional properties at incredibly low prices. In fact, there are still a considerable number of housing markets where home sale prices are still below the $100,000 mark – prices at which many people who are investing in real estate can afford to pay in cash for their purchase. With such low home prices in housing markets across the country, more and more people are able to buy second homes.
Increasingly, investors have been buying up these affordable houses with cash, and using them as rental property. Regardless of whether you are planning to purchase a home in order to “flip” it or planning to keep the home as a rental property to earn income, there are still a number of real estate markets where excellent deals can be found. Recent statistics show that home sale prices are slowly climbing back to pre-recession prices so don’t wait too long to jump into the investment game.
Investing in real estate has long been considered a relatively lucrative investment choice. While there is a certain amount of risk involved, real estate has typically been viewed as a safe long-term investment. A recent study by real estate experts predicts that although home values will not hit their 2007 peak prices again until 2023, they will steady rise at an average rate of 3.7 percent over the next five years. For any investor who is looking for long-term gains, this is good news. The key is to find markets where home sale prices are still low enough to warrant investing.
A recent analysis by ZipRealty.com took a ratio of home prices to median household incomes in 30 different metro areas and found the top 10 most affordable housing markets for 2013, which includes:
- Dallas-Fort Worth
- Las Vegas
- Raleigh, N.C.
National statistics also show that there are a number of markets where the median home list price of homes remains under, or near, the $100,000 mark as of the first quarter of 2013. Markets on that list include:
- Kansas City
- Rochester, NY
- Ocala, FL
Any investor knows that the key to investing is to buy low and sell high. Market trends and experts alike tell us that the housing market is slowly staring to rebound but there are still incredible opportunities left in some very attractive markets, making now the time to act if you have been thinking about investing in real estate. If you are interested in real estate investments, take a look at our previous post that offers an overview of financing rental properties.