Local real estate markets 2007 – Which markets are still hot?
As you know, there is a ton of doom and gloom out there regarding the national real estate market.
Some say the market has hit the bottom and is looking for the right time to jump back up… others say the market is far from the bottom… and yet others say there is absolutely nothing wrong with the market at all.
SO WHO’S RIGHT???
>>>> ALL OF THEM!!! <<<<
Yep, they’re all right. In some parts of the country the real estate markets are absolutely tanking (i.e.- many Florida cities, much of Michigan, some markets in S. California, etc.). These markets are seeing the crunch of the double headed monster of the difficult to get mortgages (and mediocre interest rates) and the flooded markets… resulting in dropping real estate prices.
On the other hand, there are still some areas in the U.S. that are on fire and are still excellent places to invest. These markets are desireable for buyers and many of these buyers aren’t affected very much by the recent mortgage industry woes. Afterall, for a borrower with a 720 credit score who can bring in 20%, now is still the time to buy real estate as a home. Investors who have cash resources and good exit plans that can accommodate for the rush of buyers who can no longer get bank financing are in a prime investing time.
So, with all of that said… what markets are looking attractive right now?
Well, as provided by our friends over at John Burns Real Estate Consulting here are some of the real estate markets that are still going strong in 2007 and should be looked at by investors as good places to pump money into.
Because the list is so large (yes, there are a lot of cities and real estate markets that are still doing quite well… take that you doom and gloomers), we are going to have to break it up into three different posts so you can read it more easily.
Over the rest of this week, we’ll post another section of the list.
Today, we have states beginning A – G.
Enjoy!
===============================
Our Favorite Markets
With so much doom and gloom in the market, we are going to focus on the positive this month. Here are our favorite markets. We are certain that there are great opportunities in almost every market in the country.
Favorite First-to-Turn-Around Markets: Washington, D.C. Orange County (California), San Diego, and Northern and Central New Jersey will follow shortly thereafter. All are low-supply markets that have been down for a while and have good economies. All markets in the country will suffer from the coming surge in ARM resets though, so our bullishness on these markets is temperate.
Favorite Long-Term Markets: Phoenix, Las Vegas, Atlanta and Orlando are where the current growth is and where future growth will be. These markets are competitive, however, so you have to be one of the best builders in town to make some good money. These markets were speculator favorites too, so their corrections this year will be steep.
Favorite Market After Housing Bottoms: We like Boise, where there are no national builders and the growth will be huge. Employers and consumers are discovering that Boise is a great place to live, and local leaders are embracing growth. This seems like a good place to buy distressed land after speculators hand the title to the bank.
Favorite Fairly Priced, Highly Competitive Markets: Austin, Denver and Raleigh-Durham. Strong demand for finished lots in good locations will benefit these markets over the long-term. All three did not participate in the housing boom earlier this decade because they were hit hard by the technology job losses. Accordingly, they are not overpriced and now most technology businesses are doing well.
In the past, we have been amused by how some people interpret analysis such as this to mean that all investments in these markets will pay off. Do your homework please! The more research you do, the more confident you will be in your investment.
|
Permits Statistics |
Employment Statistics |
Affordability |
||||||||
|
12- |
12- |
Total |
NF Payroll Employment |
|||||||
|
State |
Month |
Month |
Permits / Peak Permits |
1-Yr Growth |
1-Yr Growth Rate |
Unemp Rate |
Median Home Price |
Housing Costs / Income |
Housing Cycle Barometer |
|
| Alabama | ||||||||||
| Anniston-Oxford | 285 | 301 | 71.3% | 200 | 0.4% | 3.1% | $94,386 | 24% | 4.0 | |
| Auburn-Opelika | 1,521 | 1,826 | 82.8% | 1,000 | 1.9% | 2.7% | $150,688 | 42% | 5.4 | |
| Birmingham | 5,841 | 6,863 | 85.1% | 6,800 | 1.3% | 2.7% | $159,902 | 34% | 5.0 | |
| Decatur | 324 | 324 | 34.4% | 1,200 | 2.1% | 2.8% | $101,998 | 24% | 3.3 | |
| Dothan | 559 | 563 | 75.3% | 1,200 | 1.9% | 2.6% | $99,226 | 26% | 4.6 | |
| Florence | 371 | 371 | 47.4% | 1,700 | 3.0% | 3.4% | $101,016 | 27% | 4.3 | |
| Gadsden | 287 | 323 | 78.6% | 200 | 0.5% | 3.4% | $94,069 | 24% | 5.0 | |
| Huntsville | 3,916 | 4,319 | 86.4% | 4,500 | 2.2% | 2.4% | $130,273 | 25% | 4.3 | |
| Mobile | 2,160 | 2,851 | 100.0% | 5,800 | 3.2% | 3.0% | $133,870 | 35% | 6.0 | |
| Montgomery | 1,425 | 1,431 | 54.9% | 3,900 | 2.2% | 3.0% | $138,611 | 31% | 5.2 | |
| Tuscaloosa | 983 | 2,654 | 100.0% | 2,500 | 2.6% | 2.6% | $129,981 | 33% | 3.9 | |
| Alaska | ||||||||||
| Anchorage | 472 | 1,179 | 13.1% | 1,600 | 0.9% | 5.0% | $225,828 | 33% | 5.2 | |
| Fairbanks | 249 | 303 | 38.6% | 0 | 0.0% | 4.8% | $176,164 | 29% | 5.2 | |
| Arizona | ||||||||||
| Flagstaff | 683 | 689 | 50.1% | (100) | (0.2%) | 3.1% | $263,377 | 51% | 6.6 | |
| Phoenix | 35,149 | 42,848 | 61.9% | 69,600 | 3.7% | 2.7% | $260,900 | 41% | 6.8 | |
| Prescott | 1,910 | 2,021 | 45.1% | 1,200 | 1.9% | 3.1% | $243,435 | 55% | 6.1 | |
| Tucson | 6,587 | 6,838 | 53.3% | 14,200 | 3.7% | 3.0% | $230,000 | 44% | 6.5 | |
| Yuma | 1,092 | 1,105 | 40.9% | 300 | 0.6% | 17.9% | $205,000 | 44% | 6.2 | |
| Arkansas | ||||||||||
| Fayetteville | 2,758 | 4,046 | 50.0% | 5,000 | 2.4% | 3.5% | $128,687 | 24% | 1.6 | |
| Fort Smith | 776 | 1,042 | 79.2% | 1,400 | 1.1% | 5.1% | $83,321 | 18% | 0.7 | |
| Hot Springs | 116 | 116 | 30.9% | 1,600 | 4.2% | 5.3% | $127,486 | 30% | 5.0 | |
| Jonesboro | 482 | 617 | 62.7% | 200 | 0.4% | 5.0% | $83,285 | 20% | 0.7 | |
| Little Rock | 3,546 | 3,840 | 66.8% | 5,300 | 1.6% | 4.3% | $126,504 | 22% | 3.0 | |
| Pine Bluff | 71 | 76 | 18.4% | (800) | (2.0%) | 7.0% | $73,208 | 16% | 0.6 | |
| California | ||||||||||
| Bakersfield | 4,791 | 5,947 | 67.1% | 7,200 | 3.1% | 7.7% | $250,000 | 48% | 7.2 | |
| Chico | 987 | 1,163 | 58.5% | 2,700 | 3.6% | 6.2% | $269,000 | 61% | 7.7 | |
| El Centro | 1,461 | 1,866 | 71.1% | 2,100 | 4.7% | 16.2% | $221,500 | 48% | 6.1 | |
| Fresno | 3,970 | 5,066 | 68.3% | 3,800 | 1.2% | 8.2% | $265,000 | 52% | 7.3 | |
| Hanford | 709 | 777 | 57.5% | 1,000 | 2.9% | 8.2% | $210,000 | 38% | 7.1 | |
| Los Angeles | 8,815 | 23,822 | 33.9% | 49,600 | 1.2% | 4.4% | $588,000 | 99% | 10.0 | |
| Madera | 739 | 860 | 36.8% | 1,800 | 5.2% | 7.1% | $300,000 | 55% | 7.6 | |
| Merced | 1,324 | 1,384 | 37.1% | 1,100 | 1.9% | 9.5% | $277,500 | 50% | 7.3 | |
| Modesto | 1,662 | 1,866 | 29.4% | (600) | (0.4%) | 8.5% | $325,000 | 57% | 8.3 | |
| Monterey | 651 | 858 | 30.4% | 1,200 | 0.9% | 5.8% | $680,000 | 99% | 10.0 | |
| Napa | 260 | 306 | 30.5% | 1,700 | 2.7% | 3.6% | $605,000 | 84% | 9.0 | |
| Oakland | 4,757 | 8,789 | 38.2% | 13,100 | 1.3% | 4.4% | $660,000 | 79% | 9.5 | |
| Orange County | 2,848 | 7,686 | 30.9% | 12,100 | 0.8% | 3.5% | $693,000 | 80% | 9.1 | |
| Redding | 620 | 666 | 28.1% | 1,100 | 1.7% | 6.8% | $267,000 | 56% | 7.4 | |
| Riverside-San Bernardino | 25,209 | 29,052 | 50.4% | 45,000 | 3.5% | 5.1% | $387,000 | 65% | 9.4 | |
| Sacramento | 8,164 | 11,114 | 46.6% | 19,600 | 2.2% | 4.8% | $375,000 | 57% | 8.2 | |
| San Diego | 3,980 | 8,460 | 19.2% | 4,200 | 0.3% | 4.2% | $556,000 | 78% | 8.5 | |
| San Francisco | 838 | 2,972 | 44.1% | 23,100 | 2.4% | 3.8% | $883,500 | 102% | 10.0 | |
| San Jose | 2,129 | 5,555 | 55.3% | 22,100 | 2.5% | 4.4% | $790,000 | 80% | 9.9 | |
| San Luis Obispo | 1,090 | 1,562 | 43.4% | (800) | (0.8%) | 3.9% | $565,000 | 91% | 8.9 | |
| Santa Barbara | 468 | 768 | 28.2% | 600 | 0.3% | 3.8% | $672,000 | 100% | 9.2 | |
| Santa Cruz | 494 | 746 | 52.8% | 2,500 | 2.6% | 5.2% | $753,500 | 102% | 9.3 | |
| Santa Rosa | 1,222 | 1,944 | 33.5% | 3,000 | 1.6% | 4.0% | $548,500 | 71% | 8.0 | |
| Stockton | 3,084 | 3,178 | 45.1% | 2,000 | 1.0% | 7.5% | $360,000 | 68% | 8.2 | |
| Vallejo-Fairfield | 929 | 1,192 | 19.1% | 1,900 | 1.5% | 4.8% | $432,000 | 53% | 6.7 | |
| Ventura | 1,097 | 1,754 | 23.3% | 2,500 | 0.8% | 4.3% | $641,250 | 74% | 8.9 | |
| Visalia-Porterville | 2,860 | 3,282 | 88.9% | 600 | 0.5% | 8.6% | $220,000 | 44% | 6.7 | |
| Yuba-Sutter | 1,334 | 1,411 | 46.3% | 100 | 0.2% | 9.6% | $264,000 | 57% | 7.9 | |
| Colorado | ||||||||||
| Boulder | 349 | 567 | 11.0% | 5,100 | 3.1% | 2.8% | $349,000 | 50% | 7.7 | |
| Colorado Springs | 3,359 | 3,608 | 32.7% | 2,200 | 0.8% | 3.7% | $204,450 | 37% | 6.4 | |
| Denver | 10,418 | 15,531 | 54.4% | 20,300 | 1.7% | 3.4% | $245,000 | 39% | 6.1 | |
| Fort Collins | 1,197 | 1,622 | 44.3% | 2,300 | 1.7% | 2.9% | $215,000 | 36% | 5.3 | |
| Grand Junction | 1,426 | 1,516 | 74.1% | 2,400 | 4.1% | 2.7% | $175,082 | 42% | 6.1 | |
| Greeley | 2,032 | 2,457 | 55.7% | 2,900 | 3.6% | 3.5% | $172,700 | 41% | 5.9 | |
| Pueblo | 969 | 985 | 68.5% | 2,100 | 3.7% | 4.1% | $105,657 | 27% | 4.8 | |
| Connecticut | ||||||||||
| Bridgeport | 1,416 | 1,969 | 37.4% | 5,300 | 1.3% | 4.0% | $469,951 | 56% | 3.5 | |
| Hartford | 2,293 | 3,258 | 30.2% | 2,900 | 0.5% | 4.5% | $257,274 | 37% | 5.0 | |
| New Haven | 968 | 1,555 | 21.2% | (400) | (0.1%) | 4.6% | $290,167 | 45% | 5.3 | |
| Delaware | ||||||||||
| Dover | 1,459 | 1,585 | 72.6% | 300 | 0.5% | 2.8% | $199,385 | 39% | 7.6 | |
| Wilmington | 1,977 | 2,466 | 38.4% | 4,300 | 1.2% | 3.3% | $238,867 | 35% | 7.0 | |
| District of Columbia | ||||||||||
| Washington D.C. | 14,104 | 20,496 | 54.0% | 45,700 | 1.9% | 2.9% | $429,595 | 53% | 9.6 | |
| Florida | ||||||||||
| Daytona Beach | 2,071 | 2,891 | 36.5% | 600 | 0.3% | 3.3% | $182,500 | 36% | 6.0 | |
| Fort Lauderdale | 2,911 | 5,827 | 29.9% | 10,700 | 1.4% | 2.9% | $320,000 | 53% | 7.5 | |
| Fort Myers | 8,988 | 11,148 | 38.0% | 6,000 | 2.6% | 3.4% | $270,000 | 47% | 7.0 | |
| Fort Walton Beach | 1,263 | 1,378 | 37.0% | 900 | 1.0% | 2.4% | $215,561 | 33% | 5.5 | |
| Gainesville | 898 | 1,689 | 51.0% | 3,200 | 2.4% | 2.4% | $220,482 | 47% | 6.4 | |
| Jacksonville | 8,867 | 14,008 | 55.8% | 13,000 | 2.1% | 3.1% | $187,500 | 30% | 5.8 | |
| Lakeland | 4,736 | 5,492 | 37.8% | 3,700 | 1.7% | 3.2% | $175,000 | 35% | 6.2 | |
| Melbourne | 2,736 | 3,299 | 33.3% | (1,700) | (0.8%) | 3.6% | $185,000 | 31% | 5.8 | |
| Miami | 4,652 | 13,152 | 48.4% | 15,600 | 1.5% | 3.2% | $370,000 | 70% | 9.1 | |
| Naples | 1,893 | 3,678 | 45.1% | 2,600 | 1.9% | 2.9% | $500,000 | 76% | 8.8 | |
| Ocala | 4,719 | 5,268 | 64.1% | 1,700 | 1.6% | 3.5% | $160,000 | 37% | 7.4 | |
| Orlando | 17,996 | 26,094 | 72.2% | 26,400 | 2.4% | 3.0% | $241,000 | 41% | 7.1 | |
| Panama City | 738 | 2,177 | 39.3% | 1,200 | 1.6% | 2.8% | $202,988 | 38% | 6.5 | |
| Pensacola | 1,946 | 3,273 | 50.7% | (100) | (0.1%) | 3.1% | $166,073 | 31% | 5.2 | |
| Port St. Lucie | 3,448 | 4,154 | 38.5% | 1,100 | 0.8% | 4.0% | $218,000 | 43% | 7.7 | |
| Punta Gorda | 1,898 | 2,636 | 47.3% | 1,300 | 2.9% | 4.0% | $171,000 | 36% | 6.4 | |
| Sarasota | 3,488 | 4,108 | 28.3% | 4,100 | 1.3% | 3.1% | $265,400 | 47% | 8.8 | |
| Tallahassee | 2,081 | 2,547 | 59.5% | 3,500 | 2.0% | 2.6% | $184,199 | 35% | 5.1 | |
| Tampa | 11,888 | 16,198 | 42.7% | 14,100 | 1.1% | 3.2% | $189,000 | 35% | 6.2 | |
| Vero Beach | 1,572 | 1,810 | 41.7% | 300 | 0.6% | 4.4% | $200,000 | 40% | 7.1 | |
| West Palm Beach | 2,955 | 4,996 | 21.6% | 9,700 | 1.6% | 3.3% | $312,000 | 51% | 7.0 | |
| Georgia | ||||||||||
| Albany | 565 | 680 | 54.0% | 300 | 0.5% | 4.9% | $96,970 | 20% | 0.9 | |
| Athens | 1,374 | 2,202 | 93.5% | 1,600 | 2.0% | 3.4% | $143,467 | 29% | 0.7 | |
| Atlanta | 45,099 | 59,321 | 79.0% | 40,700 | 1.7% | 4.0% | $173,613 | 25% | 4.6 | |
| Augusta | 3,444 | 3,456 | 63.1% | 2,900 | 1.4% | 4.8% | $118,826 | 22% | 1.9 | |
| Brunswick | 1,062 | 1,068 | 83.6% | 600 | 1.3% | 3.3% | $157,763 | 30% | 5.2 | |
| Columbus | 1,369 | 2,138 | 95.2% | 200 | 0.2% | 4.7% | $114,333 | 23% | 1.2 | |
| Dalton | 664 | 887 | 80.7% | 900 | 1.1% | 3.9% | $117,365 | 21% | 1.1 | |
| Gainesville | 1,865 | 1,989 | 75.8% | 1,900 | 2.6% | 3.4% | $153,576 | 26% | 2.2 | |
| Hinesville | 306 | 570 | 64.8% | 0 | 0.0% | 4.4% | $133,971 | 23% | 1.4 | |
| Macon | 1,519 | 1,811 | 96.8% | 500 | 0.5% | 4.6% | $107,632 | 21% | 0.9 | |
| Rome | 381 | 439 | 60.8% | 1,400 | 3.2% | 4.3% | $104,275 | 19% | 0.6 | |
| Savannah | 4,269 | 5,352 | 100.0% | 2,700 | 1.7% | 3.4% | $157,738 | 27% | 5.1 | |
| Valdosta | 1,220 | 1,373 | 93.9% | 800 | 1.4% | 3.5% | $109,348 | 25% | 1.2 | |
| Warner Robins | 1,548 | 1,788 | 76.4% | 1,400 | 2.5% | 3.6% | $105,886 | 17% | 0.5 | |
Brought to you by:
================================
As you can see, there are many excellent markets still out there!
In the next couple days we’ll be posting states beginning with H – M.
Be sure to subscribe to our RSS feed by clicking the big Orange button in the upper right of this page to get notified by RSS as soon as the next post is up.
Good luck with your investing!
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, another great article with a ton of information. Your predictions seem to be right now. You put a lot work into all those stats. Looking forward to the group of H-M
- Gena Riede
Hi Gena,
Thanks again for the compliments.
We will post markets stats like this each and every month… so be sure to check back with us every month for the most recent stats.
Also, if you like the resource, help spread the word about us and our site!
Thank you,
Trevor
It’s good to see Austin, TX in the mix for attractive real estate markets for investing. The truth is while we saw in 2007 the overall sale of homes drop, the average price rose 6%. Right now we are seeing a pretty big drop in Pendings which could lead to a lot sellers having to reduce their list prices and driving down the overall average sales price. The next few months of 2008 will tell the tale if that happens. I’ll let you all know.
One area of Austin to note is the Downtown Sector. Many new condo projects are being built now and the city of Austin just came up with new master plan for the future of downtown Austin. We think this is going to be a really hot area for appreciation.
-Terrill Fischer
Prudential Texas Realty
http://www.AustinHomeBlog.com
Jul 30th, 2007 at 6:24 pm
[...] Local real estate markets 2007 – Which markets are still hot? by Trevor Mauch [...]