What’s Happening in Today’s US Real Estate Markets

Another day, another round of experts speculating on the future of the US real estate market. There seems to be a lot of conflicting information out there – it’s hard to know where to start and easy to get overwhelmed. Some metros are reporting impressive US real estate recoveries while others are still experiencing a steady decline. So when one is looking to invest in US real estate, how should they know where to start? The key to a solid US real estate strategy is twofold: first, you need to have a keen awareness of exactly what’s happening in the markets in which you’re looking to purchase. I’ve said it over and over again, but you need to be looking for US real estate in cities with more than just jaw-droppingly low prices. If there isn’t any job growth in the area and if the local economy is not seeing improvements, you’re going to have a hard time turning a profit off of your investment no matter how little you paid.

Recovering Markets

Check out this list of the 15 best housing markets in the next five years from Business Insider – it’s a great peek at some of the US real estate markets that may not have been on your radar. Phoenix is definitely hot right now – we’re seeing a strong recovery and lots of investor dollars being spent. In fact, I’ve scored some amazing US real estate deals there in the past few months. Keep in mind that Phoenix has been getting a LOT of news coverage lately, which means lots of people are going to be interested in investing.

US Real Estate

Increased Competition

Raised awareness about the potential for profit in US real estate investing means more people on the lookout for deals on housing. With housing more affordable than it has been in years and the job market experiencing a lift, competition will come from both investors and folks in the market for somewhere to live. Some of the cities that have seen the most drastic recoveries so far are already seeing massive bidding wars, and large Wall Street firms have recognized the potential in distressed US real estate. This means that when bidding on US real estate, you’ll need to be aggressive. If you see an opportunity, go for it!

Predictions for the Future

Speculation is exactly that: speculation. However, it’s important to look at pricing trends and other recent data to make informed guesses about the future of the US real estate market. Some experts predict that US real estate prices will continue to drop – Gary Shilling claims we’ll see housing prices go down another 20% from where they are now. For my money, it depends on where you’re looking. Some metros will continue experiencing falling real estate prices, but many others have hit bottom already and can be expected to experience steady (and probably modest) recovery through the remainder of 2012 and 2013. Shilling cites excess US real estate inventory as the factor for his predicted drop, but report after report has listed homebuilders as having greater confidence in select cities.

As always, our advice is to keep looking for those emerging markets – areas that are seeing job growth and have high livability factors. You need to invest in communities where people will want to live.

Looking to start investing in the US real estate market? Contact us today! The good news is, as always, is that there are plenty of US real estate opportunities for Canadians interested in investing – you just need to know where to look.

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