Real Estate Savvy: Dying vs. Growing Housing Markets
The real estate market recovery is spreading out with incredible gains in home equity being reported all over the nation. There are certainly opportunities for real estate investing or getting a good deal on buying a home virtually everywhere in the country, but there will continue to be a vast difference in the performance of many cities and towns from coast to coast. Major shifts in the economy, business trends, job markets and population will not only make a difference in which markets rocket quickly (such as San Diego, or New Haven, CT), but also those which will see slower growth or could even be dying off. There can be advantages to a slow and steady rise versus one that is rocketing from a real estate investing standpoint, and even for those just looking to buy their forever home. However, there are definitely markets that appear to be dying, and owning there could prove to be very disappointing for some. Those dying markets with older populations, few jobs, no new businesses, and little prospects for significant growth and few transactions, could be skipped over by the new rebound. As properties go to probate in these areas, they may even start to see gradually declining values. In those cases, dirt cheap might not always mean a steal. The one exception could be those rural areas bordering boomtowns, that with the right marketing and development planning could become hot spots for buying homes, grabbing vacation pads or investing in vacant land with tiny holding costs for the long term. However, if you are buying an existing home for the long term and want it to grow in value, help you build wealth or even expect to cash in on it quickly, look at the broader fundamentals and which markets match your timelines.
The U.S. housing market might be on the rebound, but does that make every home in every market a good buy?