Houston has been a great market over the past 6-7 years. Looking to find other markets that are on the verge of turning around and how to identify them. Which factors do you look at? What indicators are out there? Thanks in advance!
Income growth (or converse is the unemployment rate)- trending up is good (income); trending down is good (unemployment rate)
Building permit filings - compare it with market absorption - if more permits are being filed but the market is not absorbing it, it could indicate a market is being overbuilt so not good to invest there
Foreclosure filings - this is a leading indicator of price decline (if there's a huge uptick with this metric I will be worried)
How real estate developer friendly is the city - so watch press releases from local goverments or call them to find out their 5-year development plan
I would say the biggest factor is job growth. Where ever unemployment is low or decreasing (census.gov) dept of labor statistics bls.gov
This will tell you if a city will be growing and if it has the jobs to support the growth
If you want to predict it even farther out you would have to look for markets near other booming markets where people move once theyre priced out of the core market