Weak And Strong Areas of Real Estate Market

You want to know whether the market is strong if you are buying or selling real estate. Having such information lets you know how flexible you need to be in offers.

Sales have slowed for large parts of the east and west coasts for sellers. Good news for buyers there. On the other hand, sales are picking up in parts of the interior of our country. A cheerful note for sellers. Let’s look at what is happening, why and what it means to you.

A lot of things affect market strength, but some more than others. Is employment strong in your area? Are there jobs available that pay well? Plentiful jobs that pay well help to strengthen the real estate market.

Is there a high inventory of newly built, but unsold, housing in your area? Has this inventory been increasing or decreasing? Sales tend to slow and prices decrease when inventory is very high. This often happens when prices have moved above what average families in an area can afford.

Where Home Inventories Are High

In Washington, D.C., Miami, Florida, and Phoenix, Arizona inventories of new unsold housing have increased greatly in the last twelve months. Those markets tend to be better for buyers than in the recent past.

Where Home Inventories Are Low

In Texas, Dallas and Houston have very low housing inventory increases and a good employment picture. Prices are increasing there. Families are buying homes. Investors are scouting out the area and buying, too. This has created a situation that is very helpful to sellers, which is somewhat ironic given that Texas generally missed out on the housing boom of the last six years.

What’s Going On In Your Market

How do you figure out what the market is like in your area? Read the local news paper. Are there “price reduced” or “buy now before the next price increase” phrases in ads for homes being sold? Are there stories about lay-offs or about new employers coming to town? Call your local builders’ association, realtors’ association, Chamber of Commerce. Ask lots of questions about the number of unsold houses today as compared with the number a year ago. Ask the Chamber of Commerce about employers coming to town or leaving. Visit models in new communities and ask lots of questions there, too.

You will soon have your own opinion about what is going on in the part of the country in which you want to buy or sell. Your strategy needs to be adjusted to the strength of your position as a buyer or seller. Understanding the market you will be dealing in is a good place to start.

Real Estate Investing in a Crisis Market

You've probably heard someone who invests in the stock market say, "There's always a bull market somewhere." That simply means there is a way to profit whether share prices are going up or down.

A few experienced real estate investors feel the same way about the real estate market. There are ways to profit not matter if property values are going up or down.

Real estate can be a better investment than stocks because some properties are always going to be as good as gold. I place the following in that category:

1. Beach Front

2. Lake Front

3. Property with a unique view.

Stop and think for a moment about what makes almost anything valuable? At the top of that list should be limited supply when compared to demand. That's what you get with most any water front property.

Some of the world's most valuable real estate is breach front property. There is no denying that even it may drop some value in a major financial crisis, but it won't stay down long. How much value do you think a beach front home in Malibu, California lost during the housing crisis of 2008? Very little of any, is the answer.

Beach front property is very limited in supply and they aren't making any more. It's not like middle class housing where developers just move a little farther out from the city center and build a few thousands more homes to satisfy demand.

In an effort to protect costal ecology federal and state governments now make it very difficult to build on beach fronts. Those laws and regulations tend to drive up the value of the few homes and lots that are available.

The same holds true for prime lake front property. The value of a lake front home at Lake Tahoe, California has gone through the roof in the last ten years.

Blue chip quality even extends to some mountain side or cliff top properties that provide a dramatic view. Not quite the sure-thing as beach front property, but still a valuable investment.

Smart investor welcome a downturn in property values, because some of these uniquely located properties will become available at irreplaceable prices. Not rock bottom prices, but low enough to insure a "can't miss" investment. These rare properties are the first to recover after a downturn, so investors often find themselves in a profit position within a few months.

What if you can't afford the prices of waterfront property even during pull backs? All is not lost. Some of the world's greatest beach front bargains are available right now in places like Costa Rica, Panama, Honduras, Belize, Ecuador, Uruguay, Brazil, Spain, Croatia, Malta and other countries around the world.

Wonderful countries with friendly people and stable governments, not to mention that each has a cost of living dramatically lower than that of North America or Western Europe.

For the cost of one beach front home in Fort Lauderdale, Florida, you could by 10 homes on the beach at Fortaleza, Brazil.

The sad truth is that many Americans will not be able to afford a comfortable retirement if they remain in the U.S. as the politician's unbridled spending drives down the value of the dollar. The cost of living in many Latin American countries is a fraction of that in the U.S.

Retirees with modest savings will be looking for beach homes in these foreign countries. Demand will drive up value, but right now you can buy a modern beach front condo for as little as $40 thousand U.S. dollars.

Low prices in Latin American beach areas are attracting offshore buyers from all over the world. It's the chance of a lifetime for those adventurous investors who are willing to spend some time in an area and learn the local customs and buying procedures.

There's always a bull market somewhere, and right now it's at the beach.