5 Red-Hot Housing Markets That May Surprise You | InvestingAnswers

Here's a great article that I found about the best markets for real estate investments. 

5 Red-Hot Housing Markets That May Surprise You | InvestingAnswers

By Miranda Marquit
September 03, 2013

When my husband and I bought our home, prices were near their peak in our area. 

At the time, we had no idea that home prices in our market were near the peak. We thought we were buying in an area that had potential. We bought in a new subdivision. The town was expanding. Things were starting to blow up.

Unfortunately, at the time, we didn’t exactly have our fingers on the pulse of what was happening. We didn’t realize that housing permits were dropping in number, or even that employment was stagnating in our area. 

A year later, the financial crisis changed everything for everyone, and now, several years later, our home’s market value is $13,000 less than we paid.

We learned a valuable investing lesson from this experience. We learned that it’s important to pay attention to more than just (possibly) bubble-inflated prices -- and to carefully consider where we are buying to ensure that the housing market in the area really is on the way up.

Perhaps most important, we learned that it’s often best to buy closer to the bottom of a market. That's when you can find the best deals. In fact, my colleague Nathan Slaughter -- editor of Street Authority's High-Yield Investing newsletter, says if there was ever a time to invest in real estate, it is now. To put it bluntly, if you wait too long, you could miss out on a ton of potential profits from an opportunity that only comes along once every couple of decades. (Click here to learn more about his exclusive report.)

With that in mind, here's a list of markets that are booming right now. Next time we decide to buy -- or rather, if we decide to buy again -- we will research the situation more, and we will look for markets that recently saw bottoms but are truly heading higher. 

Places like…

Phoenix, Arizona

According to the NAHB/First American Improving Markets Index (IMI) issued on August 6, 2013, Phoenix is one of the 247 metro areas in the United States showing improvement in housing. Prices have improved 34.8% from their trough in 2011. This improvement is solid, but it also means that there are plenty of undervalued homes available in Phoenix.

On top of that, the IMI notes that permits have increased 3.4% and employment has improved 6.6% from their troughs of recent years. 

There is solid, but undramatic improvement, and it’s possible to get some good deals in this popular area.

Odessa, Texas

Texas has been on a lot of lists lately, with its cities showing signs of solid economic growth and housing market recovery. One of these towns is Odessa. 

According to the IMI, Odessa has seen a 27% improvement in prices since its trough in late 2010. Permits are also on the rise, gaining 29.9% since 2009. This means that you might have a choice of newer homes to choose from, as opposed to Phoenix, where there is still something of a glut of existing home inventory. 

Employment is growing as well. Odessa has experienced 29.1% employment growth since its 2009 bottom.

Bismarck, North Dakota

This town might be considered by some to be located in the middle of nowhere, but it has made its mark in the aftermath of the financial crisis.

North Dakota is one of the states that didn’t see a huge drop in employment, and that was sheltered, to some degree, from the worst of the recession. But the housing market is still blowing up in Bismarck. Indeed, home prices are up 29.4% from their trough in early 2010, and permits are up 41.8%. The IMI also says that employment is also still improving -- up 13.9% from its trough in 2007. 

Boise, Idaho

I’m from Idaho (but not Boise), so I found it interesting that Boise was represented on the IMI’s list of improving markets. When I considered the hit my uncle took when he sold his house during the recession, though, my surprise evaporated. After all, a market that ended up being smashed can make a great opportunity later, when you catch it on the upswing.

Boise has seen a 26.4% improvement in prices since the trough it reached in 2011. Permits are up 3.8%, and employment has improved 8% since their 2009 troughs. As with Phoenix, one way to look at these stats is to realize that there are plenty of good deals to be had on existing homes.

Detroit, Michigan

Yes. Detroit. Really. 

In spite of concerns over the city declaring bankruptcy, the housing market in Detroit is starting to heat up, probably due to the fact that there are people like Donald Trump who think that Detroit is worth investing in right now. It might not be a poor choice.

Home prices have rebounded 24.5% from their 2011 trough, and permits are up 10%. Even employment is improving, gaining 6.6%, according to the IMI, from the 2009 trough. If Detroit really is on the verge of a renaissance, now might be the time to get in on it.

The Investing Answer: Now is the time to start thinking about investing in real estate -- or even buying a primary residence. Prices, although up from their troughs in many markets, are still far from their pre-crash peaks. That means that, with the right research, you could get in now, while the markets are starting to blow up. You can get a good deal and even possibly see decent appreciation in the future.

P.S. -- As I mentioned earlier, don't miss Nathan Slaughter's exclusive report on what we call "Renter Nation." And remember: If you wait too long, you could miss out on big potential profits from an opportunity that only comes along once every couple of decades. Click here for all the details.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor
Click Here to Search 24/7 for The Best Real Estate Deals in Boise!Click Here to Download Our Free "Selling Your Home" Pre-Listing Plan! Click Here to Pre-Qualify for a Loan Online!

Regards, Michael Hon, REALTOR®CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

5 Red-Hot Housing Markets That May Surprise You | InvestingAnswers

Here's a great article that I found about the best markets for real estate investments. 

5 Red-Hot Housing Markets That May Surprise You | InvestingAnswers

By Miranda Marquit
September 03, 2013

When my husband and I bought our home, prices were near their peak in our area. 

At the time, we had no idea that home prices in our market were near the peak. We thought we were buying in an area that had potential. We bought in a new subdivision. The town was expanding. Things were starting to blow up.

Unfortunately, at the time, we didn’t exactly have our fingers on the pulse of what was happening. We didn’t realize that housing permits were dropping in number, or even that employment was stagnating in our area. 

A year later, the financial crisis changed everything for everyone, and now, several years later, our home’s market value is $13,000 less than we paid.

We learned a valuable investing lesson from this experience. We learned that it’s important to pay attention to more than just (possibly) bubble-inflated prices -- and to carefully consider where we are buying to ensure that the housing market in the area really is on the way up.

Perhaps most important, we learned that it’s often best to buy closer to the bottom of a market. That's when you can find the best deals. In fact, my colleague Nathan Slaughter -- editor of Street Authority's High-Yield Investing newsletter, says if there was ever a time to invest in real estate, it is now. To put it bluntly, if you wait too long, you could miss out on a ton of potential profits from an opportunity that only comes along once every couple of decades. (Click here to learn more about his exclusive report.)

With that in mind, here's a list of markets that are booming right now. Next time we decide to buy -- or rather, if we decide to buy again -- we will research the situation more, and we will look for markets that recently saw bottoms but are truly heading higher. 

Places like…

Phoenix, Arizona

According to the NAHB/First American Improving Markets Index (IMI) issued on August 6, 2013, Phoenix is one of the 247 metro areas in the United States showing improvement in housing. Prices have improved 34.8% from their trough in 2011. This improvement is solid, but it also means that there are plenty of undervalued homes available in Phoenix.

On top of that, the IMI notes that permits have increased 3.4% and employment has improved 6.6% from their troughs of recent years. 

There is solid, but undramatic improvement, and it’s possible to get some good deals in this popular area.

Odessa, Texas

Texas has been on a lot of lists lately, with its cities showing signs of solid economic growth and housing market recovery. One of these towns is Odessa. 

According to the IMI, Odessa has seen a 27% improvement in prices since its trough in late 2010. Permits are also on the rise, gaining 29.9% since 2009. This means that you might have a choice of newer homes to choose from, as opposed to Phoenix, where there is still something of a glut of existing home inventory. 

Employment is growing as well. Odessa has experienced 29.1% employment growth since its 2009 bottom.

Bismarck, North Dakota

This town might be considered by some to be located in the middle of nowhere, but it has made its mark in the aftermath of the financial crisis.

North Dakota is one of the states that didn’t see a huge drop in employment, and that was sheltered, to some degree, from the worst of the recession. But the housing market is still blowing up in Bismarck. Indeed, home prices are up 29.4% from their trough in early 2010, and permits are up 41.8%. The IMI also says that employment is also still improving -- up 13.9% from its trough in 2007. 

Boise, Idaho

I’m from Idaho (but not Boise), so I found it interesting that Boise was represented on the IMI’s list of improving markets. When I considered the hit my uncle took when he sold his house during the recession, though, my surprise evaporated. After all, a market that ended up being smashed can make a great opportunity later, when you catch it on the upswing.

Boise has seen a 26.4% improvement in prices since the trough it reached in 2011. Permits are up 3.8%, and employment has improved 8% since their 2009 troughs. As with Phoenix, one way to look at these stats is to realize that there are plenty of good deals to be had on existing homes.

Detroit, Michigan

Yes. Detroit. Really. 

In spite of concerns over the city declaring bankruptcy, the housing market in Detroit is starting to heat up, probably due to the fact that there are people like Donald Trump who think that Detroit is worth investing in right now. It might not be a poor choice.

Home prices have rebounded 24.5% from their 2011 trough, and permits are up 10%. Even employment is improving, gaining 6.6%, according to the IMI, from the 2009 trough. If Detroit really is on the verge of a renaissance, now might be the time to get in on it.

The Investing Answer: Now is the time to start thinking about investing in real estate -- or even buying a primary residence. Prices, although up from their troughs in many markets, are still far from their pre-crash peaks. That means that, with the right research, you could get in now, while the markets are starting to blow up. You can get a good deal and even possibly see decent appreciation in the future.

P.S. -- As I mentioned earlier, don't miss Nathan Slaughter's exclusive report on what we call "Renter Nation." And remember: If you wait too long, you could miss out on big potential profits from an opportunity that only comes along once every couple of decades. Click here for all the details.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor

Click Here to Search 24/7 for The Best Real Estate Deals in Boise!
Click Here to Download Our Free "Selling Your Home" Pre-Listing Plan!
Click Here to Pre-Qualify for a Loan Online!

Regards, Michael Hon, REALTOR®
CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

Just Listed - Fully Leased Fourplex in Boise, Like New 6%+ cap rate

Asking $379,000; priced at a 6% plus cap rate. 

We just listed this Boise Idaho Investment Property; Fully leased, like new fourplex in Central Boise. Built in 2005, close to St. Alphonsus Regional Medical Center, Boise Towne Square Mall and freeway access. Consistently rented in a well maintained fourplex development. Buyer's choice of property management. This will not last! BTVAI

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor
Click Here to Search 24/7 for The Best Real Estate Deals in Boise!Click Here to Download Our Free "Selling Your Home" Pre-Listing Plan! Click Here to Pre-Qualify for a Loan Online!

Regards, Michael Hon, REALTOR®CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

Prices and Rates and Rents, OH MY!!!

Boise Idaho Investment Real Estate Update

A lot has happened to the fourplex market in the last several months in Boise Idaho. Prices have definitely gone up, investment mortgage rates have also gone up and rents are as strong as they've been in a long time.

So why have prices going up?

1031 exchanges and cash buyers are the main drivers of the increase in demand for fourplex investments in Boise Idaho. Cash investors are pulling money out of the stock market and bank accounts. In addition sellers are reluctant to sell because of increasing prices thus leading to smaller inventory numbers. Therefore the increasing demand and the shrinkage in the inventory have led to increasing prices. The logic might be, “Should I leave my money in a bank account and make nothing or negative or should I put my money into a real estate investment that will get me a 5 to 6% cap rate?”

Interest rates are up

Interest rates have gone up as we all knew that they would. Click here for a link to an article that explains it better than I can. The mortgage rates for investment properties have gone up over  5% to approximately 5.125%; that’s a 1% jump from rates in Feb of this year. That will put a downward pressure on cash flow before taxes for potential investors. Investors will likely have to live with lower cap rates which at this time are still much better than leaving your money in a bank account or putting your money in to the stock market casino royale.

Rents are up!

According to the Southwest Idaho chapter of NARPM rents have increased significantly year over year over the last 24 months. So why are rents increasing in Southwest Idaho? There seems to be a steady and strong influx of people moving in from California, Oregon, Washington and other cities and states around the northwest as well as from the east. In general people are finding that the quality of life in Boise Idaho is very desirable. Rental vacancy rates in Ada County are as low as 3%. Therefore rents are increasing steadily which is serving to counteract the downward pressure from increasing mortgage rates on cash flow before taxes.

So what's the moral of the story? The moral is that overall rates, which are still ridiculously low rates, are increasing; inventory is short so therefore if you are looking to buy AND a good rental property comes on the market in Boise, be ready to jump. It remains a very good time to buy as well as potentially sell. So if you're interested in doing either that is buying or selling your fourplex or other investment properties in Boise Idaho please give us a call at 208-939-9033 or send us an email.



The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor
Click Here to Search 24/7 for The Best Real Estate Deals in Boise!Click Here to Download Our Free "Selling Your Home" Pre-Listing Plan! Click Here to Pre-Qualify for a Loan Online!

Regards, Michael Hon, REALTOR®CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

How do interest rates affect the pricing of fourplex investment properties in Boise Idaho?

I just posted this blog on my website regarding interest rate effects on investment real estate in Boise Idaho. 

As we have been hearing for the last twelve months, interest rates are going up. Dennise Sandquist, my favorite loan officer at Guild Mortgage just quoted me 4.625% 30 year fixed with points on a fourplex loan for a buyer with less than 4 total loans. That's 3/8's of a point higher than we were earlier this year. What does that mean for price, cap rates, buyers and sellers.

As we know, an interest rate is the rate at which interest is paid by borrowers for the use of money that they borrow from a lender. The higher the interest rate, the higher the debt service and the lower the cash flow before taxes on investment real estate in Boise.

If cash flow is to be maintained on an investment property in Boise Idaho, the price needs to decrease. Unless the buyer is willing to live with a lower cash flow. As interest rates go up, so will interest rates paid by banks on deposits. Therefore the differential in returns on real estate investments and just leaving your money in the bank will decrease.

So what does this all mean? If interest rates go up and buyer still demand the same or higher returns on the their cash investments, then prices will need to decrease. However, if buyers remain in a mad scramble to put their money into real estate investments in Boise Idaho and elsewhere, then they will need to live with lower returns.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor
Click Here to Search 24/7 for The Best Real Estate Deals in Boise!Click Here to Download Our Free "Selling Your Home" Pre-Listing Plan! Click Here to Pre-Qualify for a Loan Online!

Regards, Michael Hon, REALTOR®CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

Just Listed - Impeccably Maintained Home in West Boise

The Iron Eagle Realty Team just listed this impeccably maintained home in West Boise! 11921 W Goldenrod Dr. in the Binghamshire Subdivison. Click here for detailed property information. Low Maintenance and Private backyard with Mature Landscaping and Covered Redwood Deck. Living Room with vaulted ceiling and wood burning fireplace. Kitchen has tile floors, breakfast bar, and Stainless Steel Appliances. Wood stove and built-ins in Dining Room. Cozy Family Room with ledgestone fireplace. Master Suite has a walk-in shower and soaking tub. Quiet and Mature West Boise Neighborhood with Community Pool. BTVA

To view this property or any other real estate in Boise Idaho area, please call us at 208-939-9033.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor
Click Here to Search 24/7 for The Best Real Estate Deals in Boise!Click Here to Download Our Free "Selling Your Home" Pre-Listing Plan! Click Here to Pre-Qualify for a Loan Online!

Regards, Michael Hon, REALTOR®CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com

How do property taxes affect my Investment Property in Boise Idaho?

I just posted information about property taxes and how they affect your investment properties in Boise Idaho on my website. Go check it out.

The Iron Eagle Realty Team's mission is to assist you, our client, in the sale and acquisition of real estate properties in the state of Idaho, specifically the Boise Idaho Real Estate Market. Whether you are buying or selling a home, whether it is a foreclosure, short sale or equity property, we handle our customers and clients with empathy and honest truths so they can make informed decisions as they advance in the process of buying and selling real estate that meet specific needs.

PS: We've Helped More Buyers and Sellers than 99.8% of any Local Realtor
Click Here to Search 24/7 for The Best Real Estate Deals in Boise!Click Here to Download Our Free "Selling Your Home" Pre-Listing Plan! Click Here to Pre-Qualify for a Loan Online!

Regards, Michael Hon, REALTOR®CEO, The Iron Eagle Realty Team
Associate Broker, Silvercreek Realty Group
Certified Short Sale Specialist®
Investment Property Consultant
Direct: 208.919.0458 Office: 208.939.9033 Fax: 208.514.1422
www.IronEagleRE.com Michael.Hon@IronEagleRE.com