Steps to Determine the Hottest Real Estate Market

Written By Steps To Faculty Published June 2nd, 2010

Are you planning on buying real estate? Would you like to be able to determine what the next big market will be? While this is a dream for many, it is not an easy task to undertake. But now, there is data available and some steps you can use to help forecast where you should invest. Take a look.

Step 1 Use the housing opportunity index

In order to determine the upcoming hottest real market estates, you will need to use the United States housing opportunity index found at hud.gov. This is a measurement that was developed by the American Association of Home Builders alongside Wells Fargo that goes on to verify the extent of the affordability of such homes. This is done by making comparisons between the average home costs with average incomes. Adopting various metropolitan statistical areas they also consider other statistic sites on the internet such as the Moody’s Economy.com to determine the sale prices in the major markets to determine where home prices were expected to rise.

Step 2 Know the cycle

Foreclosure reports from various realty sites, such as Century21.com, also provides relevant information as they rank cities in accordance to their percentage foreclosures. The averages of all these metrics are then employed in order to finally arrive at the overall figure. All these factors are put into considerations since they all play a very significant role in predicting the market health at a particular period of time. An area for example can be offering fair prices due to prices being brought down as a result of overabundance of foreclosures in a particular area. On the other hand the falling rates of foreclosures don’t mean that purchasing homes is not a good investment. This means that the values of such homes may be flat or going down at such times. Even still, predicting home prices won’t tell one everything about a particular market since some areas have abrupt changes in prices.

Step 3 Look at the job market

Job stability too has a significant role determining the hottest real estate market. Job stability goes hand in hand with housing stability. Home prices therefore tend to rise in cities where there are major job opportunities. These provide markets for the hottest real estates. Check out where the jobs are at monster.com or in money.com.

Remember, what is hot today may not be hot tomorrow.


Roger Due

Investing in Your Destiny® & Coaching Program - Wealth Building Summit Dallas, Texas

My name is Roger Due and I am from Albuquerque, New Mexico and I am the owner of the Monsano software company. This has been an absolutely fantastic conference. This is the best I have ever been to.