What Are Real Estate Values Doing in Your Area?

59 Replies

I’m trying to get a read on what real estate values are doing in each geographic area where we do business. It’s one thing to read reports compiled by third parties, but it’s an altogether different story from the agents, hard money lenders, or real estate investors on the ground in the area. I thought this would be the perfect place to ask this question.

Please share your opinions on how either residential or commercial real estate values are doing in your area now and what the future will bring. I’d love to hear from you!

In Phoenix where I bought last year, prices are going up. Something that was 75K is now 90K. Everything under 100 seems to now have multiple offers from what I am seeing. Lots of money flowing into the Phoenix market in the last 12 months. I am also buying in the Las Vegas market now. Prices there still hovering around the bottom, but lots of money coming in from all over (China, Canada, Large Investors, rumors of hedge funds) and for good deals, there are multiple offers. I tend to like areas that I feel have over corrected and are poised for a rebound and offer cash flow as well. The data I watch show inventory levels way down. Look forward to hear whats happening in other areas.

In Richmond, my houses I am flipping are selling faster and the REO's I am trying to buy are more frequently receiving multiple offers. I dont see prices creeping up, but I suspect inventory levels are being slightly reduced.

Jim

Corey- I'm building new homes in St. George and also Rio Grande Valley, Tx, as well as owning a bunch of rentals. 100% occupied for over 200 doors! I guess that means market is extremely good in those areas. Rich

The market is absolutely picking up in Michigan. Anything that's half way decent is being sucked up by owner occupants in the first 15 days. Only the junk seems to get past the 15 days. For a rehabber, it's becoming tougher and tougher to get anything off the MLS. I am using other avenues now for my acquisitions.

I'm experiencing the same as Jim...my rehabs are generating multiple offers in the first couple days of being on the market.

With prices beginning to pick up, I'm now trying to load up on rentals. I can buy rehabs in any market, but there will only be limited opportunity to buy rentals this cheap!

We are at a 5yr low in inventory in Northern Virginia. Anything under 200K usually gets multiple offers. Some of the hardest hit areas are up 50%+ off the lows. I've been seeing all range of prices (up to a million) selling pretty fast.

This is great feedback all, thanks!

A question I'd like to ask to everyone, except Cheryl C., is, 'Why do you think its booming? Because values are low and everyone wants to get in the game?'

I think most everyone agrees that the market is buzzing, but why?

Also, what effect will this 'buzz' have on values over the next 12 months? Could it artificially inflate values or will it somehow find balance?

Thanks for the great feedback on your geographic areas all...

The market is going up because of cheap money. Hopefully it's a redo of 2003-2005 now. Lol. I've noticed most of the higher end homes in my hood in Seattle over $1 million are all pending now after sitting for a year. There is one over $3 million that finally went pending after sitting for over 2 years. In Florida where I invest I am seeing double digit appreciation on the low end homes and inventory is very tight. I hope it lasts although it's only going to make things more competitive most likely.

Great question Corey! In our market I am feeling a squeeze. The purchase price of a flip is up and there are multiple offers on anything decent. But sale prices on the back end have not quite caught up to the rise in purchase prices. Makes it tougher to make a profit for now but I am glad to see it rebounding. Just need to adjust our strategy.

Thinks have picked up in Toledo as well. The last 7 houses I've sold have all been under contract with deposit before rehab was complete. Also, as late as last fall every phone call I got pertaining to a house for sale contained the question, "are you willing to rent it?" Now everyone wants to buy. Let's hope it stays this way for a while. Last year was tough.

Re: what I asked before

"I think most everyone agrees that the market is buzzing, but why?

Also, what effect will this 'buzz' have on values over the next 12 months? Could it artificially inflate values or will it somehow find balance?"

Please share...

Thanks for the great feedback on your geographic areas all...

Corey, I know you didn't want to hear back from me ):, but I was wondering if anyone out there is following SW FL - Naples, in particular? Also, Cape Cod.

btw - 3 of my tenants are buying (out of 20). I think people are seeing a glimmer of an economic upturn, are sick of waiting, and want to take advantage of prices and rates.

Corey,
Great Question and it seems that all of the posts are confirming what I am feeling. Pressure to get a few more deals in before the market corrects itself. Here is the Boise / Treasure Valley it appears that inventory is being bought up. Most deals are going at or above asking due to multiple offers. Same with short sales and REOs. I still see a steady stream of NOD and pending foreclosures, but I think that is only because the buyers from 2006 - 2010 are so far underwater that they do not have an incentive to wait for prices to go back up.

My personal read is that once the short sales, foreclosures and REOs are removed from the market, that prices might return to 2009 levels within 2 years.

Oh and I also have a few renters asking if they can work deals to purchase, but I am more of a buy and hold kinda guy.

What effect if any will this market turnaround in lower value SFR's
have on Multi family units like Duplexes and 4-plexes?
Any thoughts on the change in vacancy rates and therefore rents?

Originally posted by Frank Romine:
Speaking for central ca not much has change. Not much increase in values and zero vacancy. Its a good market and Im excited to buy more.

Frank

Rents increasing? By how much?

South MS...

Pretty much flat throughout the whole recession... The only run up we experienced was due to inflation and Hurricane Katrina... The latter has corrected itself slightly.

Demand for SFR is good.. Unfortunately most landlords are crazy and seem to abide by the 1% fast track to bankruptcy....

Sales are steady, but slower than I like...

Good Foreclosures are drying up it seems, and the remaining 80 on the MLS are mostly dogs..

REOs are getting multiple offers on each deal. They are selling around 100% to 105% of list price, sometimes higher in specific parts of town. Resale sales are also getting multiple offers as well. Most areas I research are under 5 months of inventory, and many are at 3 months of inventory. We have shifted into a sellers market and I'm ready for this summer to heat up.

In Louisville, KY, it appears to me that the higher-end homes (200K+) have leveled off (still selling at a discount) and the lower end homes are now increasing in ask and sales price.

Inventory on good looking fixer uppers is not so hot... lot of dogs on the MLS, but not many that look like good opportunities.