Last week, I commented on a great study by Realty Trac on Top 20 Rental Markets. This week the topic is Appreciation, Market Predictions and some great resources for market research.
While speculation for appreciation in real estate is a commonly used approach, appreciation is an extra bonus in my investing strategies. However, I absolutely research markets and trends including values, predictions, demographics and everything under the sun. Many investors seek to get in at the bottom. Many wait for the market to go up and jump on the bandwagon to ride the wave. Unfortunately many do not time this right, buy at the height and ride the plummet down. Such is life with speculation.
A few things to consider. First of all, understand that the future cannot be predicted and market values are out of our control. Local factors as well as lending, government and economic factors all impact values. The first time home buyer 8K credit is a great example of a government factor that propped values up and when it expired many markets took a sudden dip. The point is to do your research but also recognize that markets and the future are out of our control.
So where do you go to find good market value forecasts and predictions?
Home Value Forecast from Pro Teck Services – Here is a great resource for market prediction and appreciation over the next 5 years. It takes into account many important factors such as Number of Active Listings, Average Listing Price, Number of Sales, Average Active Market Time, Average Sold Price, Number of Foreclosure Sales, Number of New Listings, etc. There are 14 helpful graphs for savvy investors to use in their decision making.
HousingPredictor.com by State – Along the left hand side you will see write ups for each state. As I write this in April of 2013, not all states have write ups for 2013 but many do and hopefully the states you the reader are interested in.
101 Stats about all US Cities – City-Data.com
Vacancy & Population – Census -