One of the first to rebound from the housing bubble, Houston continues to be one of the strongest markets in the country. In a data survey, Houston was No. 5 in the U.S. Photo courtesy of seniorliving.
The news from Houston continues to bewilder.
One of the strongest real estate markets in the country the last year or so remains just that.
Not only is it one of the strongest, it’s one of the wisest to invest your money.
There was a time if you willing put your money in the real estate market you needed a mental check. The market was very weak and the country was in the middle of the recession and the housing bubble. You would have been better to just flush your money down the toilet – at least then you wouldn’t have to deal with the stress, you would have cut your losses from the start.
Houston was one of the first to rebound and it hasn’t stopped since.
Recent data collected by HomeVestors and Local Market Monitor show that southeastern Texas is one of the best in the country as of December 2013. It’s that data and current market that show a strong 2014 as well.
This study lists Houston at No. 5 behind Fort Worth, Dallas, Charlotte and Nashville. It looked at job growth, particularly lower paying jobs, population growth and home prices. The data showed that these markets are nearly risk-free for owners and renters of single-family homes.
“We think the markets hold considerable opportunities for investors as long as they do not overpay for properties,” David Hicks, HomeVestors co-president, told the North Dallas Gazette. He added that the risk of investing in all markets across the country remains low. “Only seven to the top 100 markets continue to be ranked as ‘speculative.’”
The rest of the top 10 was Atlanta, Oklahoma City, Orlando, Houston and Boise City.
“These markets also have strong home price appreciation, but are still under-priced by as much as 28 percent,” Ingo Winzer, president and founder of Local Market Monitor, told the Gazette.
One of the big reasons for the continued strong market, as Forbes writes, is investors are backing away from the market, leaving more room for the rest of us to invest.
Forbes adds that people fear they’ve missed the best time to buy a house. But there are still deals they can find because the competition is still low (as noted above) and an overall less crazed market than 2013. The key is to buy where the prices remain low and in cities with a lot of growth potential.
As the data collected by this study shows, Houston is one of the best in the nation.
Each of the cities on the list has high population and is still considered under-valued. As the study notes, this makes these cities fairly low-risk investment opportunities for those who are smart and know not to overpay.
As with any transaction that involves money, there always is a risk. But if the investor is smart and does their research, the risk lowers.
For those in Houston, take advantage of the strong market this year and invest your money in a wise market.
It definitely beats the alternative of wondering if you could have made a killing.