Edited Version of Article By: Xhevrije West, DS News
Many opportunities still exist for real estate investors to acquire properties despite the decrease in inventory of foreclosed homes, according to new quarterly data from HomeVestors, the ‘We Buy Ugly Houses’ organization, and Local Market Monitor, a real estate forecasting solution.
The data points out markets that will make profitable rental markets and where home prices are likely to increase at a good rate over the next few years. These markets must have a population that is growing at a rate of 4 percent or better with people coming into the area in search of jobs. Additionally, the current job growth rate must be 2 percent or better and unemployment must be low.
According to the data, Denver, Colorado leads the top 10 list for real estate investing, while Texas dominates the top 10 holding four spots: Dallas, Houston, Austin & San Antonio. Seattle, Washington finished out the top 5 for real estate investing.
“For the last few years, investors have been able to find real estate bargains they could turn into rental properties. That period is pretty much over—the inventory of foreclosed homes has been picked fairly clean, at least in the larger markets,” said Ingo Winzer, president and founder of Local Market Monitor. “You don’t need a bargain in order to make a good real estate investment. Demand for rentals continues to increase in many markets, while homeownership erodes. It’s strongest in those markets growing the fastest, which describes our Top 10 list.”
“There are still some bargains to be found in these cities,” said Ken Channell, HomeVestors co-president. “Although home prices have increased moderately in many parts on the country, there are still smart opportunities for investing in real estate. The economy appears have stabilized and job and population growth make ideal conditions for investing.”
Top 10 Best Markets for Real Estate Investing:
- Denver, Colorado
- Dallas, Texas
- Houston, Texas
- Austin, Texas
- Seattle, Washington
- Orlando, Florida
- San Antonio, Texas
- Charleston, South Carolina
- Nashville, Tennessee
- Raleigh, North Carolina