Here in Los Angeles, the market has become very SOFT.
Inventory is high, foreclosures are rising and prices seem to be stagnant. They may even be DECLINING. Homes are staying on the market longer and buyers are concerned about all the negative press in the news regarding the real estate market.
It’s funny, but in my general area (Austin, TX) the market is trending up. However, in my specific location (just outside Austin), the market still seems to be a bit stagnant. The future outlook shows this area as a whole will be going up for the near future due to the influx of new businesses, undervaluation, etc.
You can alwasy go to Realtor.com and click on “Market Conditions” to see what agents who work in your specific locale think about the market in your area.
Tampa, FL - the market in general is very soft now. properties that are below $200k (retail) are still moving pretty well so I have found the best success for flipping in Tampa is to get a property between 30-35% below $200K (ARV).
Baltimore-MD. market has softened a little and their are tons of homes for sale, but still chugging along. Alot rehabbing going on in city for revitilization of awful neighborhoods. I think it’s great.
To amend what I said about Phoenix … there are strong localized growth areas. With energy prices going up (and other factors) the “drive until you qualify” mindset has shifted a bit and it is the outlying areas that seem to have the most challenges right now. The inner core of Phoenix, however, is seeing a renaissance, thanks in part to a new ASU campus and the installation of light rail. I just purchased a SF in a designated historic neighborhood downtown and will re-sell in ~ six months after historic renovations. Also, high-rise condos are hot.
myrtle beach sc & coastal nc The market here is strong. All kinds of new “happenings” driving the market up. Growth here is un-believable. Press has negatives, but this is the new hottest coastal area there is. There is a lot of supply, but there is also a ton of demand. People are retiring/moving here left and right. You can bank on a minimun of 10% appreciation per year, if you know where to buy. In some cases 20 - 30%. You can also loose your but. You just need local knowledge of where to go and where to stay away from. People are investing here from all over the country… and out of the country. Last I counted, there were 13 cranes (new high rise resorts) on the beach, airport expansion, major highway construction, airforce base re-developement (20k new homes), hard rock cafe theme park (first of its kind)((under construction))(((3000 year round jobs))), duplicate of the atlantis in the bahamas, starts construction this fall and so on and so on and so on. Again, THIS MARKET IS STRONG!! e-mail me for more information… firstname.lastname@example.org
Sacramento, Ca. - Market is very soft. Most of the new construction being offered with thousands of upgrades at no additional cost, rear yard landscaping, and in some cases no payments for up to a year. Re-sale properties are moving, but at a snails pace. Sellers are offering huge buyers agent commissions to generate traffic, vacations to buyers, cash at closing, you name it. Prices have fallen in some of the newer communities anywhere from 5-10% from last years prices. Lots of bank repo signs - even the banks are having issues selling the repos…
Mainstream thinking: market is soft, buyers have retreated, cookie-cutter building influx in the past few years have led to a lot of foreclosures of 1 - 3 year old homes, 40% more inventory than last year reported in a recent statistic, consistently the top 3 states for foreclosures (because our dear ol’ Governor Shaft is incapable of creating jobs >:( >:( >:(, but I digress).
Creative investors’ thinking: great market, more deals than investors, weeds out the wanna-be investors, pre-foreclosure deals abound, slow-down in buying will drive up occupancy rates on rentals, tightening of sub-prime industry means more bruised credit folks need help, rehabs always available (and many rehabs are not for the newbie investors), Ohio real estate investing still returning great profits on rehab projects and draws out-of-state investors for me who cannot invest in their own high-priced coastal locations.
Side note… its funny… when the “housing bubble” topic recently hit the local news again, local realtor board rushed to make a statement saying “home-buying levels are right where they should be.” What a vague, noncommittal, wishy-washy statement.
Mainstream thinking: market is soft, buyers have retreated, cookie-cutter building influx in the past few years have led to a lot of foreclosures of 1 - 3 year old homes, 40% more inventory than last year reported in a recent statistic, consistently the top 3 states for foreclosures (because our dear ol' Governor Shaft is incapable of creating jobs , but I digress).
Creative investors’ thinking: great market, more deals than investors, weeds out the wanna-be investors, pre-foreclosure deals abound, slow-down in buying will drive up occupancy rates on rentals, tightening of sub-prime industry means more bruised credit folks need help, rehabs always available (and many rehabs are not for the newbie investors)
I’m in Boston, and I Second that.
P.S.- Foreclosures are up 56% in my backyard :o . Couldn’t ask for a better time to be an investor.