How to know which areas of the country have best markets?

7 Replies

I talked to a guy who lived in NYC. He said he used to flip in Jacksonville, FL long-distance because the market was hot at the time. How does someone know which markets are "hot?" And what does "hot" mean? Does it mean that market prices are going up? Are there websites that keep track of this? What statistic should I be looking at?

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Hey @Patrick Philip , I think it depends on each individuals definition of “hot.” For example, the Midwest is “hot” for cash flow investors right now and we’re seeing a lot of out of state investors. I would define hot as someplace with a lot of demand and activity... another example, Austin is “hot” and a lot of people are flocking to the city for cool tech jobs and causing great appreciation which is “hot” for investors that dig the appreciation play. I read an article the other day (I forget where) about how someone bought a house in Austin using bitcoin and I think it marked the first type a RE transaction had been done with that form of currency. I think the Reno, NV market is also “hot” because a lot of Silicon Valley companies are investing in Northern Nevada like Tesla. Side note, if I just triggered any Reno/Tahoe investor’s keywords I would love to connect. As far as resources go Patrick, the new book that BP released by Anson Young has some good tools for using list source to find the most active areas of town. Good luck!

Originally posted by @Rob LaRovere :

Hey Patrick Philip , I think it depends on each individuals definition of “hot.” For example, the Midwest is “hot” for cash flow investors right now and we’re seeing a lot of out of state investors. I would define hot as someplace with a lot of demand and activity... another example, Austin is “hot” and a lot of people are flocking to the city for cool tech jobs and causing great appreciation which is “hot” for investors that dig the appreciation play. I read an article the other day (I forget where) about how someone bought a house in Austin using bitcoin and I think it marked the first type a RE transaction had been done with that form of currency. I think the Reno, NV market is also “hot” because a lot of Silicon Valley companies are investing in Northern Nevada like Tesla. Side note, if I just triggered any Reno/Tahoe investor’s keywords I would love to connect. As far as resources go Patrick, the new book that BP released by Anson Young has some good tools for using list source to find the most active areas of town. Good luck!

 Thanks.

What's the title of that book? I see several by that author.

So a market is "hot" for appreciation when demand for housing goes up. People are moving there for whatever reason and it is outpacing the rate that builders can build.

But what factors make a market "hot" for cash flow? Or cap rates?

I'd say hot is lots of activity in the market. Usually means prices are trending up rather than flat or declining. Days on market is a good indication too.

If homes sit and sit on the market I don't think too many people would think that's hot. 

L.A is very hot right now. It is the top choice for international real estate investors as well. 

http://www.latimes.com/business/la-fi-global-inves...

Anything priced right in L.A right now isn't going to last on the MLS too long .

Multiple offers on properties being common is also a sign of a hot market. 

Cash flow investors are going to go where the cash flow is. For a while people were buying in cities like Phoenix, Atlanta , Orlando and other cities for cash flow..but then prices went up to where the numbers didn't make as much sense. 

Things got too hot. 

Now it's very common for investors seeking cash flow to invest in the midwest as Rob mentioned because the numbers still work in many parts of the midwest. 

Cities like Indianapolis, Cleveland , Cincinnati, etc seem to come up pretty frequently. 

Some of the colder weather markets will begin to see less activity from now through March.  I think it's a good time to find deals.   We still see alot of rehabs going in the winter months.  I always hear how winter is a drag.  We've seen fewer buyers in those months, but have experienced seeing alot of rehabs starting and being completed in time for Spring. 

@Patrick Philip , I'd say "hot" generally refers to a seller's market where inventory is low and prices are high because of excess demand. This part of the phase lasts of course until the builders catch up with demand and saturate the market...resulting in a "cold" or "cooler" buyer's market. 

Originally posted by @Joseph M. :

I'd say hot is lots of activity in the market. Usually means prices are trending up rather than flat or declining. Days on market is a good indication too.

If homes sit and sit on the market I don't think too many people would think that's hot. 

L.A is very hot right now. It is the top choice for international real estate investors as well. 

http://www.latimes.com/business/la-fi-global-inves...

Anything priced right in L.A right now isn't going to last on the MLS too long .

Multiple offers on properties being common is also a sign of a hot market. 

Cash flow investors are going to go where the cash flow is. For a while people were buying in cities like Phoenix, Atlanta , Orlando and other cities for cash flow..but then prices went up to where the numbers didn't make as much sense. 

Things got too hot. 

Now it's very common for investors seeking cash flow to invest in the midwest as Rob mentioned because the numbers still work in many parts of the midwest. 

Cities like Indianapolis, Cleveland , Cincinnati, etc seem to come up pretty frequently. 

 How does one do the research to find out which markets are currently hot?

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