As I dig into what makes a great investing environment for real estate investing to do either flipping or buy and holds or both for that matter, I have to look at what regions are hot. When I refer to hot I mean selling like hot cakes. I think many analyst get it wrong from the aspect that if a market is on fire and houses are selling in less than a week that it is a good real estate investing market. I think back to supply and demand, when demand is high so are prices. Now I’m not saying that there aren’t deals to be found in markets that are on fire. If you happen to be an experience investor with systems, contacts and an adequate amount of funding you can leverage marketing campaigns, utilize contacts and be the one who finds the good deals and makes a lot of money.

The one challenge all investors will find in the markets as well are limited contractors. In todays intranet age and with the invent of Zillow almost everyone knows what they need to about the market, or they think they do. So the home owner in many instances have figured out that if they will do their own fixer upper they can score the profits themselves. This is occurring in many of the hot markets which is limiting the number of contractors. I mean if you’re a contractor and you can work for a home owner and get full retail pricing verses working with an investor who always wants wholesale pricing and the investors deals are getting harder to find so not as many jobs for the contractor, they are going to go where the money is. So in the short of it hot markets makes it harder from almost every side except the selling side.

The real estate investor who’s strategy is buy and holds for passive income can do very well in the hot markets. They mainly look for turn key properties that are producing enough cash flow to pay all expenses, build a renovation bank role and maybe even a little income form the start. There are some who prefer even with their buy and holds to do fixer uppers. It is proven that what ever strategy you choose make sure its one the market will allow. So many investors today fall in love with an idea of what they want to do rather than what the market is telling them to do.

I’m going to give you some insight into those 5 best markets with an article I read and I hope you enjoy it. Until next time read on….

Positive signs keep coming out about the U.S. residential housing market. The latest statistics detailed that buying activity on previously owned homes, including those in foreclosure or through the short sale process, increased again in May and is now at its fastest growth rate over the past 24 months. Here is an overview of five markets where home prices remain quite reasonable at around $100,000. The outlook continues to improve for future sales in these areas, so now is a good time to buy.

Atlanta

Atlanta didn’t get too much press during the bursting of the housing bubble, but its average home price has taken a nearly 38% tumble from peaks reached in June 2007, according to data from housing website Zillow. The current average home value is very affordable at just below $109,000, though trends continue to be somewhat weak. Prices have fallen nearly 12% over the past year. The average rent in Atlanta is right around $1,100, which makes renting very affordable. However, with housing prices still depressed, buying could make sense in the current environment.

Dallas

Dallas, as well as most major metropolitan areas in Texas, never experienced a severe drop in housing prices or jump in foreclosures at the height of the housing crisis. Zillow estimated that Dallas home prices peaked in October 2007, but are down only 16% from their highs. The current average home price is quite affordable at just over $121,000. The average monthly rent was recently listed at just below $1,300 and indicates that buying a house versus renting could be a smart decision in today’s market.

Las Vegas

In stark contrast to Big D in Texas, Las Vegas was one of the worst hit housing markets during the housing debacle. Prices peaked in April 2006 and have fallen a whopping 63% over 2011 to roughly $111,000. Renting is also very affordable in Vegas at just over $1,150 per month.

Phoenix

Home values in the Phoenix area were among the first to peak. According to Zillow, this occurred around March 2006. Phoenix was also one of the most overheated and has seen values fall around 56% to about $124,000. As in Atlanta and Vegas, rents are quite reasonable at just over $1,100, but depressed home prices and strong demographic trends, including immigration and retirees that continue to move to Phoenix, bode well for future housing trends.

Tampa, Fla.

Miami is in fast recovery mode thanks to a steady influx of foreign buyers, but Tampa, Fla. remains in the doldrums. Prices are down nearly 53% from the June 2006 peak and currently stand around $103,000. This makes the city one of the most affordable in the country. Values are still down close to 8% over 2011. Rents are also very affordable at right around $1,150, making either buying or renting a pretty compelling decision for those in the market.

Conclusion

The current trends for the U.S. housing market are encouraging. Combined with record low interest rates, homeowners and investors that pick up a property in the next little while could really be sitting pretty within the next few years.

For our local trend information log into www.southernbelleproperties.com

One of the up an coming Real Estate Re-development companies in the Tulsa market https://www.facebook.com/southernbelleproperties/

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