Some Real Estate Hot Spots Are Hotter Than Others
There may be a whole wide world out there for boomers to invest in, but some points on the map appear to be particularly buoyant.
For those boomers considering an investment property or just taking stock of how much their own home is worth these days, experts offer their assessment of some markets that are currently hot.
Boomers desire to “get their foot in the door” is an assumption that is used when agentsacrossamerica.com picks areas that will experience appreciation, according to Sean Gaughan, director of Internet services with an Internet real estate marketplace, based in Chicago.
Gaughan says that “since property has and may very well continue appreciation in these areas, boomers cannot afford to wait 5 to 10 to 15 years to buy and retire here.” Cities the Web site lists, in no particular order, include Phoenix, Ariz.; Portland, Ore.; Raleigh-Durham, N.C.; Tucson, Ariz.; Ashland, Ore.; Salt Lake City, Utah; and Austin, Texas.
“Relatively affordable prices, and appealing climates and lifestyles” are some of the reasons he says boomers will continue investing in these markets.
In the past year, market appreciation in some areas has exceeded 20%, a growth rate he says is maintainable for the next 2 to 3 years. That growth, he continues, is likely to keep pace in Phoenix. But in regions such as Florida, he adds, the top of the bubble may already be near. “Sellers must price their homes aggressively or face a long market time and stiff competition from other sellers.” This follows a period of what he describes as “excellent appreciation.”
Boomers who have bought homes in Texas in the last two years “face stiff competition from new construction and will struggle to sell their home at a price that allows them to pay their mortgage, realtor and closing costs,” Gaughan adds.
Another Web marketplace, EscapeHomes.com, an online marketplace for second home buyers and sellers based in San Francisco, says that in the second home market, the top market of interest as measured by consumers conducting online searches was Myrtle Beach, S.C. Other popular destinations include South Padre Island, Texas; Naples, Fla.; Holden Beach, N.C.; Ocean City, N.J.; Las Vegas, Nev.; San Diego, Calif.; Park City, Utah; Orlando, Fla.; and Santa Fe, N.M., in that order.
New York is one area that is strong and will remain so, says Barbara Stone, president of Regency Capital Realty, New York.