There are lots of reasons why it’s time for the housing market in the U.S.A to spring forward. But before you take the plunge, there are a few factors you should take into consideration.
Location Location Location
It’s a term you’ve heard before but it really rings true for American housing. “It goes without saying that location, location, location is the most important factor in real estate,” explains Brad Le to Forbes. He was recently named as Wall Street Journal’s top 200 realtors in the U.S. “If you can find something that is either in a good school district, near walkable amenities (Whole Foods, Starbucks, etc.), or near mass transit, you’ll be in great shape when it comes to being able to cast a wide net among potential buyers. Focus on at least one of those factors for the best return on investment.” Renting or spending your downtime in the area is a great way to see just how vaulable it really is. It may look great on paper, but is it really worth your hard earned dough?
Identify Diverse, Growing Markets
There is always the good and bad that comes with areas that go through gentrification. As a real estate investor, you want to look for areas that are growing and will continue to do so for long enough to make a return on your property once you sell. An ideal way of doing this is keeping an eye on business news and find markets that significant companies are flocking to. If you’re beginning to see a trend in an area, make your move. Ensure that there should be a diverse mix of industries that are contributing to the economy, so you’re not stuck with the worthless property if the company goes belly up. Keep in mind that a lot of major developers are beginning to dub areas they’ve bought plots of land in as “the next big up and coming hot spot,” so don’t blindly invest in these areas before doing your research
How Fast Can You Unload Your Property?
Please do yourself a favor and look into homes and condos in the area that are currently on the market and see how long they’ve been for sale. You may be surprised to find that they’ve been there forever. USA Today released an article revealing just how long homes in the 63 housing markets across America. “Like anything else, home prices are driven by supply and demand forces, which are highly correlated with the area’s economy, job market, and population changes,” writes Evan Comen. “Demand is the largest contributor to housing price growth. Americans have been moving from large, urban areas in the Northeast to suburban, mid-size cities in the South and West Coast, driving up the price of homes in those fast-growing states”