"Hot" Real Estate Market? The flood gates are about to open.
Real estate investors are always on the lookout for properties they can buy and sell in a short period of time. Oftentimes, these properties are located in a "hot" real estate market. A "hot" market means that properties in the area are selling quickly and/or market prices are increasing.
Hot real estate markets include oceanfront and mountain view locations, metropolitan cities, gated communities, and activity-based communities such as those featuring golf courses. A lesser known hot market is sustainable living communities where homes are manufactured from recycled materials and powered by solar panels and windmills.
"Green" living communities are sprouting up across America and located in both urban and suburban areas. Investing in sustainable living properties now can potentially yield a tidy profit later. Green communities are appealing to people of all ages; however, the typical resident is 32 to 45 years of age and married with two children or less. These properties make excellent rental properties and attract tenants who are financially stable.
An easy way to tell if a real estate market is "hot" is if the area has a short supply of homes with rising prices. If houses are selling so quickly that buyers have difficulty getting offers accepted it is considered to be a hot market.
Oftentimes, areas being developed due to business expansions are considered hot real estate markets. For instance, if an electronics manufacturer or pharmaceutical company establishes their headquarters in an area and there is an increased demand for workers; there will also be an increased demand for affordable housing. Typically, the real estate market will turn upwards when a large organization opens its doors.
When a natural disaster occurs and forces masses of people to relocate, multiple hot real estate markets will begin to appear. Normally, these markets are located within a 50-mile radius of where the natural disaster occurred.
When vacant lots begin selling like hot cakes, it's usually a sign that either condominiums or office buildings will be built in the near future. Condominiums located in hot real estate markets are usually a good investment; particularly if they are new. They are relatively maintenance-free for 5 to 10 years and can provide a steady stream of income.
When new office buildings are erected, it creates a need for additional housing. It can also spark a renovation effort in the area; allowing investors to purchase homes under market value. When entire neighborhoods undergo renovation it creates a hot real estate market that can be exceptionally profitable for the savvy investor.
If you own property in a hot real estate market all you have to do is put your home on the market and watch the offers roll in. If your home is well-maintained and in perfect condition, you can easily obtain multiple offers and accept the highest bid. This type of activity creates market conditions that result in rising home prices throughout the area.
Although the real estate market is currently cool, there are plenty of deals to be found in hot markets. However, in order to stay on top of the game, you need to frequently research and review real estate market trends. The more you know about how the real estate market works, the better off you will be when it comes time to buy or sell.
Published on August 29, 2007 at 09:37 PM