2009 Money moves: Low housing prices mean opportunity
Filed under: Home, Real Estate, Recession
Americans are suffering a real estate hangover, and lots of us think hair-of-the- dog is part of the cure. As in, buy property now and wait for the pain to go away, then enjoy the rewards.Demographics are on our side. As Wachovia Bank economist Adam York told USA Today, "The one saving grace is the population is growing by 3 million people a year. They need to live somewhere. That means more roofs."
Last year, apartment construction fell to the lowest level in 15 years, according to a survey released today by research firm Reis Inc.. Rents in the fourth quarter of 2008 also fell for the first time in five years. But over the long haul, that situation won't last. Fewer apartments and more people add up to higher rents for landlords. The trick is picking the right place to plunk down your dollars. Where might your money down now give you the biggest return?
If you have good credit, a job, some cash and the fortitude to stick it out as the economy recovers, now is a great time to buy, says Forbes.com. Forbes evaluated 40 metro areas using the last 25 years of data from National Association of Home Builders to identify the top 10 cities where property has increased in value and avoided drastic swings in price in tough times. It overlaid that information with Department of Labor data identifying where jobs are holding their own or increasing. Then it factored in cities where there isn't a huge inventory of unsold homes. Below are their picks.
- Seattle
- Washington, DC
- San Antonio, Texas
- Minneapolis
- New York City
- St. Louis, Mo.
- Philadelphia
- Cincinnati, Ohio
- Portland, Ore.
- Atlanta
Buying in any of these places won't make you instantly wealthy, but over the long haul, real estate has been a can't miss investment. As Donald Trump told Forbes, "I go with real estate all the time."
Reader Comments (Page 1 of 1)
1-10-2009 @ 8:53AM
Sarah said...
As women age, some mature and have actually told me they are so stunned that they used to think they were so much smarter then they are, that they have been continually disappointed in the workplace, and they don't understand where money is coming from for others and why. Here's a big clue: don't be an unwed mother. Sure there are welfare abusers but you might make to much to qualify but not enough to reach your expectations in life for lifestyle and financial standards. You will severely limit who will marry you and why. Marriage has been a major wealth generater for more traditional, financially responsible people, and this benefits others. Stop giving away the farm for free and then screaming poverty. Or trying to make a killing the first chance you get, being way out of line. Okay, all the financially responsible ones: YOU ARE THE WEALTHIEST PERSON YOU KNOW NOW!
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1-13-2009 @ 12:03AM
Sara said...
I'm one of the financially responsible ones; but, although not by choice, have also been a single mother of two for the last 17 years! I definitely have worked hard and will retire in the near future being able to do it without financial worries! I've invested well and saved to the point where I am more than just financially stable. I've build an incredible amount of wealth in the last 20 years by living way below my means while everyone around me was living paycheck to paycheck... or extravagantly and well above their means. I am able to pay for my kids college of choice, go on nice vacations, live comfortably, and I have excellent credit to bat. I also have no debt as I pay my cc bills in full every month! Do not underestimate single women... we don't need to be MARRIED to build wealth just smart! Although I agree a lot of people are not like me, they are not just limited to the unwed! Don't buy into the stereotypes Sarah! BTW my name is really Sara
1-13-2009 @ 4:17AM
Ann said...
What's all this crap about being an unwed mother about? Like being married to a man without any financial responsibility is any better? No thanks, I'm a single mom who is doing just fine without having to put out in order to generate wealth.
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1-20-2009 @ 2:07AM
Ty said...
Ah, another huckster for the real estate industry. BUY , BUY, BUY they say. They keep saying that even though the fundamentals of house buying, (income related to house value and interest rates) is still overvalued. We all know incomes are not going up and away int he next 5 years, and the govt can't keep interest rates at 0% forever, especially if our dollar keeps delcining and foreigh investment rolls out.
Answer: Don't pay too much for that house. Put at least 10 % down and DO NOT look at just the payment. Offer under value for homes and everyone will finally be able to afford a home, because of the correct valuations. The people who paid toomuch in 05 and 06..let them eat it. Eveyone else eats it when their stocks go down.Housing is no special asset. it goes UP and DOWN. NOW is down.
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