If you’ve heard it once, you’ve heard it a thousand times, but it is worth repeating once again that the three most important factors in real estate are location, location, and location.
Where a particular piece of property is located will say more about its value than just about every other factor.
While some people are tied to a particular area by their careers or their families, other opportunistic homebuyers are targeting different parts of the country as good places to live based on the average real estate prices relative to the rest of the country.
If you are fortunate enough to have a flexible career and a family that is willing to relocate, there are lots of opportunities out there this summer that can make a big impact on your bottom line.
Let’s take a look at each side of the value coin and see if we can spot where some of those opportunities might be.
Lowest Priced Markets
Realtor Mag recently released some updated figures for the lowest and highest priced real estate markets in the country. The bottom five markets in terms of median home price were Cumberland, Maryland; Youngstown-Warren-Boardman, Ohio; Decatur, Illinois; Wichita Falls, Texas; and Rockford, Illinois.
This collection of markets that run from Maryland, through the rust belt, and down into Texas all boast average home prices under $100,000. With those prices being as low as $67,400 in Cumberland Maryland, these markets seem to be the best places to get a great deal this summer.
Highest Priced Markets
On the flip side, the top five real estate markets in term of median home value are San Jose, California, San Francisco, California, Honolulu, Hawaii, Anaheim-Santa Ana, California, and San Diego, California. The average home price in San Jose is approaching $1 million, and San Francisco isn’t far behind at $770,300.
If you are currently making your home pretty much anywhere in California or Hawaii, you might want to consider cashing in and selling while these values are sky high.
Putting this Information to Use
If you are able to do so, the obvious way to capitalize on these price discrepancies would be to move from one of the higher priced markets to one of the lower priced markets. But there are a host of reasons that won’t be possible for everyone.
Another way to consider capitalizing on this data would be to look at buying an investment property in one of the lower priced markets. Having a national agency like Carrington in your corner will give you access to contacts in almost every one of these markets.
You might even be able to come up with the down payment by refinancing your home if you live in one of the higher priced markets.
Forecasting for the Summer of 2016
There are definitely some deals to be had in some markets, but we have seen real estate prices on the rise across the country throughout the early months of 2016. These increases have been primarily driven by a strong demand for homes contrasted with a limited supply.
While the rising prices will likely convince more sellers to come into the market, there is no sign of the strong demand for homes decreasing anytime soon.
Expect both supply and demand to increase throughout the summer and even into the fall, which means that 2016 could be a banner year for the real estate industry.