Real estate bargains? With all the talk about a bubble, come on. Yes, there are areas in the country that haven't experienced the large run-up in home prices the last couple of years. According to the real estate research service, Local Market Monitor, six towns qualify as under-valued according to their most recent survey. An interesting note is that two are in Texas and all in more southern areas of the U.S.
Under-valued U.S. residential real estate markets:
Augusta, Georgia
El Paso, Texas
Fayetteville, North Carolina
Little Rock, Arkansas
Mc Allen-Edinburg, Texas
Memphis, Tennessee
It will be difficult to determine if these statistics will drive a boom in these communities. But savvy investors are looking for new investments for side-lined liquidity pulled from frothy real estate markets in the past two years. And with the over-valued markets taking long to adjust to market realities, many investors are ready now to find exciting growth opportunities in valued markets.
While under-valued markets look promising, you should conduct a careful analysis to determine if demand will or can be created to support higher resale prices. Look at closed sold comparables from the each of the last three years, to see if consistent appreciation and demand will work in your favor.
Mark Nash is the author of Fundamentals of Marketing for the Real Estate Professional, Starting & Succeeding in Real Estate, Reaching Out: The Financial Power of Niche Marketing, and 1001 Tips for Buying and Selling a Home. Mark is a contributing writer for: Realtor (R) Magazine Online, Broker Agent News, Real Estate Executive Magazine, Principal Broker, and Realty Times. He contributes residential real estate analysis to Business Week, CBS The Early Show, CNN, HGTVpro.com, The New York Times, and USA Today. View his books at http://www.1001RealEstateTips.com .
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