If you are out looking for a new home, there are many things in the neighborhood or area that you want to look for. These include, of course, low unemployment, job growth, jobs in the area and a location close to urban areas (which increases demand because of urban sprawl). Look to see if a Home Depot or Target is moving in. Where do I recommend? Here are a few areas:
- Idaho – around Boise and Idaho Falls. While I was laughed at earlier this week and told that “all four viewers” would call and complain, Idaho has a 2.7 percent unemployment rate and a five-year job growth rate of more than 18 percent. Median household income is above average. It’s a little boring, though; not necessarily right for the young and single. Prices are about 70 percent of what they were two years ago but have been stable now for months.
- Salt Lake City and Logan, Utah. I’ve been bullish on SLC and Boise for the past year. Both have a 2.8 percent unemployment rate and a five-year job growth of more than 18 percent. Lots of biomedical and high-tech companies are moving in, and there are lots of call centers, too.
- Key Largo , Florida. Not as battered as other areas of
Florida, it still saw a more than 30 percent price decrease but is relatively stable now. I still like
Palm Beach as well due to the numbers of boomers moving. - Las Vegas, Nevada. I get beat up for this pick, but look at the facts. It has a 12 percent year-over-year increase in population, and retirees are moving here in droves. The deals are all over the place because of still very high foreclosure rates. Vegas also has a low unemployment rate. Prices dropped 19 percent in one year leaving some great bargains!
- Phoenix, Arizona. After experiencing a one-year drop in prices of 18 percent after another year of 22 percent, prices are low, low, low.
Phoenix is the fifth-largest city in the country by population, and it continues to grow. Many major companies such as Motorola, Boeing and Intel continue to create jobs. The city retail sales tax is 2 percent. It’s an inexpensive state to live and work in. Also, boomers will continue to create demand.
4 Responses to “Where to Bargain Hunt Today”
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April 17th, 2008 at 11:18 pm
For the long term home investor, as global warming accelerates, the long winters will get milder and the Pheonix retirees with start looking north…;-)
April 23rd, 2008 at 9:34 am
Great stuff! Thanks for sharing, one fresh idea and you can change the world, keep up the great work.
April 23rd, 2008 at 5:12 pm
I don’t think Phoenix is a very good idea. Most of the population boom there was construction workers who went there during the “north wall finance” boom where the investors were building houses to sell, and using model homes to get all the units financed before they were completed by having the main load bearing wall erected before inspection. All other construction as “subject to” in the financing. Well needless to say when the boom wore off the bust was UGLY.
I personally know people who went upside down by millions in Phoenix, and now that the construction boom is slowing the workers are moving away. Proof this is true is my best friend just asked to stay on my couch because he could no longer find reliable construction work in Phoenix.
The result? You might get a tract home built five years ago that never sold, and has set un-maintained for years. Right now I can drive you through suburbs of Phoenix where entire tracts of homes that are sitting in foreclosure and empty, still with the new material stickers in the windows. Yes good deal. Living conditions? Uhm No thanks.
If you have portable income and don’t mind living two feet from the sun, it’s probably a good idea. For the rest of us….I’m not so sure it’s great advice. Remember that the first three rules of real estate are “Location, location, and location”.
May 28th, 2008 at 7:54 pm
Dude,
I’ve got three properties on an island on the Gulf Coast available for a short sale. Make me an offer.
And if you’re facing foreclosure, check out my blog entries to see how it goes.
Noah@ShortOnChange.com
http://www.ShortOnChange.com