Because of the preconstruction bubbles in Vegas, Fl, Phoenix, etc. I get asked often about alternative emerging preconstruction markets. PreCon investors who reserved homes in Boise, ID and SLC in 2004, just as those areas started to boom as emerging markets, have profited nicely. My goal is to find markets just as they are about or starting to boom, like ID and SLC in 2004. Two have received some significant media attention, I thought I would share:
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Cumberland Maryland. I can’t find the article I read to post, but it is ranked the #1 fastest growing US market with sub-$100k median prices. http://money.cnn.com/pf/features/lists/nar_3q05/
It’s become a hot area for DC commuters with the opening of a new transpo system. I don’t know of any specific opportunities there due to lack of time. Please share your findings here. -
New Orleans, LA. Prices up 30% in past few months: http://www.alertnet.org/thenews/newsdesk/N07221919.htm
Hotels are still over-packed with locals, because there are no new homes to buy. Only those raw land developments which started before Katrina will provide the first inventory for residents to buy with their insurance checks. No precon homes exist to buy just yet (that I can find), but I know of one development just outside the flooded areas where investors can buy lots to hold or for immediate construction of new homes with a local builder who claims to be one of the only ones building. They claim some immediate equity, plus 7 mo of appreciation during build out: www.PreConLots.com
I wouldn’t recommend buying in the flooded areas until that levy is able to withstand Cat 5 hurricane. However, Real Estate just outside that zone should be extremely valuable due to limited supply and huge demand: http://www.bankrate.com/brm/news/investing/20060110a1.asp
If anyone knows of others worthy of attention, please share!