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Question

I saw in the Realtor hotness index this market slowed down. Is it going to appreciate? Are there better markets? Whst about investing in new houses in good school districts that negatively cash flow but might have boosted appreciation 10-20 years down the line.

Seph Hancock · Answer

I think the challenge is that nobody can reliably predict which markets will appreciate the most over the next 10-20 years. Personally, I’d be cautious about buying a property that significantly negative cash flows based solely on future appreciation. Appreciation is great when it happens, but cash flow can help you survive market cycles, vacancies, repairs, and unexpected expenses.

Lacey S. · Answer

I fully agree with Steph. I would possibly consider a property that is just above break-even today (maybe re-fi if rates lower & appreciate) but I would not buy something that was CF negative in the hope it will appreciate in 5+ years.

Nicholas L. · Answer

@Sebastian Lim

i can't tell which market you're asking about, or even what question you're asking

Nick Sansivero · Answer

Hey @Sebastian Lim, to confirm are you referring to Raleigh? I see you tagged that location. If we're talking hotness I'd say it's room-temperature.. maybe slightly warm. Here's some stats:Median days on market around 41 days and a pending to active listing ratio of 69.5%, which points to solid demand. It is not overheated, though, since active listings are up 7.1% year over year, price reductions are still common at 21% of listings, and home values are slightly down over the past 12 months, -1.73%.

Alan F. · Answer

Realtor "hotness" 😆

How's this market?

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