10 Most Appreciating Real Estate Markets - Summer 2008
Whoa! It’s been over a week since my last article… how time flies by when business is pumping!
I’m always a pretty positive guy and hate it when people start off in any discussion by looking at the negatives. There’s just too much negative talk out there in today’s real estate market … especially when there’s so much positive out there for savvy (and ethical) real estate investors to grab a hold of.
Anyway, here’s some positive news for all of those people who say the real estate market sucks.
The Top 10 Fastest Growing Real Estate Markets in the U.S.
Here they are… the top 10 fastest growing (most appreciating) real estate markets as reported by CNNMoney.com and yahoo Real Estate .
12-month forecast: 4%
Median home price: $109,000
One year price change: 2.1%
Five year price change: 23.3%
Change in foreclosure rate: 23%
12-month forecast: 2.7%
Median home price: $121,000
One year price change: 3.4%
Five year price change: 20.1%
Change in foreclosure rate: 5%
12-month forecast: 2.7%
Median home price: $156,000
One year price change: 2.9%
Five year price change: 29.4%
Change in foreclosure rate: 20%
12-month forecast: 2.6%
Median home price: $126,000
One year price change: 0.8%
Five year price change: 29.5%
Change in foreclosure rate: 27%
5. Buffalo /Niagara Falls , N.Y.
12-month forecast: 2.4%
Median home price: $105,000
One year price change: 1.6%
Five year price change: 24.5%
Change in foreclosure rate: 14%
6. New Orleans, La .
12-month forecast: 2.2%
Median home price: $158,000
One year price change: 1%
Five year price change: 43.7%
Change in foreclosure rate: 49%
12-month forecast: 2.2%
Median home price: $128,000
One year price change: 7.2%
Five year price change: 41.1%
Change in foreclosure rate: 8%
12-month forecast: 1.9%
Median home price: $124,000
One year price change: -3%
Five year price change: 8.3%
Change in foreclosure rate: 37%
12-month forecast: 1.9%
Median home price: $170,000
One year price change: 5.7%
Five year price change: 38.3%
Change in foreclosure rate: 14%
10. El Paso, Texas
12-month forecast: 1.8%
Median home price: $134,000
One year price change: 6.9%
Five year price change: 51.9%
Change in foreclosure rate: 32%
I know from experience that this list is a great list of great cities that most people don’t think of first when thinking about places to invest in real estate . However, this is just a short list of great markets around the U.S… so don’t stop here in your research for new places to invest.
In fact, in my backyard there are several of the nations top markets right here in the Northwest (Salem, Oregon; Longview, Washington; and many others).
Do your research, find cities and neighborhoods within cities that are still doing well (or are on the verge of becoming a breakout city) and start learning the market. Then, jump in and capitalize on the market while it is still a bit soft.
Hey, my name is Trevor and I'm the founder of The REI Brain and a real estate investor since the age of 21. Right now, my focus in real estate investing is multi-family income properties and I have plans on moving more into the commercial real estate investment world in 2008 and beyond. 
Trevor, your advice in closing your post about doing some more research is absolutely correct. CNN and Yahoo might need to do a little more research.
McAllen’s reality is a bit different than they’ve reported. Through the first 4 months of 2008 McAllen’s median SFH price has dropped 14.9% to $95,100, with a constriction in permits noted of almost 6%. Thankfully their job growth picture is strong (2.4% 6 month rolling average), and population growth remains brisk but has slowed a bit in the second half of the decade, so at least some of the fundamentals are still in place.
My team researches markets across the country for investors and only have of this list El Paso in our top 10 as of this month, though agree that NO, LA, Baton Rouge, LA, and Birmingham, AL are worth a look.
You’re right, it pays to dig a little deeper and take a very careful look at markets these days, including their demographics and employment too. Caveat Emptor.
Hey Mark,
Great insight.
Totally agree… I knew this data wasn’t completely true (these aren’t the top 10 markets)… but they do provide food for thought for investors to get their brains working to check out these (and other) markets.
The great thing about real estate is that a city can be doing bad… but certain neighborhoods within the city can still be rocking. So, the great lesson here is that people need to become familiar with a city… and certain neighborhoods within the city as well… because there are a ton of GREAT markets for investors out there still.
Thanks for the input and thanks for stopping by!
- Trevor
Thanks for reposting this, Trevor. And thanks, Mark, for the invaluable insight in your comment. Both of you are assets to to the real estate corner of the blogosphere!
…jp
Hey Jp…
Likewise man! You’re one of the good guys for sure.
For all of you out there who haven’t checked out Jp’s new real estate investing tips site… check it out now and bookmark it… it’s gonna be a great resource.
http://www.reitips.com
Thanks again Jp.
- Trevor