The US housing market is in a slump, no one would question that, but a slump offers bargains as well as disasters. What was an un-affordable property just a year or so ago, may well now be within reach and many real estate investors are on a bargain hunt at the moment.
The slump is likely to continue for the next year or so at least, so don’t expect a quick “flip,’ at the moment. But for those with patience and the cash to weather the storm, the US domestic market is looking like a good long term investment. So where are the bargains to be had?
Some areas are holding up better than others and certain parts of the country have seen a much slower downturn in prices. New York, Manhattan, is still seeing record prices in the luxury condo sector for instance and some new developments in Chicago and Philly are still managing to sell out in the pre-building phase.
Others have not been so lucky. Florida for instance is seeing the highest levels of foreclosures in history. Look to Florida for a bargain or two. The only problem with Florida is the market there is likely to be slowest to recover so it will have to be sat on for some time. Even then it is unlikely to rebound to the sort of levels seen just a few years ago when flippers and overzealous real estate agents managed to push prices up to unrealistic levels. Much of California urban development suffers the same problem.
Our recommendations? Charlottesville, VA; Austin and Houston, TX; and Durham, NC. These markets have seen less recent damage, but are all forecast to grow at reasonable levels in the short to mid term. Foreclosures in most areas can also offer substantial savings, but, once again, don’t expect to be able to flip it for a quick profit.
