Photo: Courtesy of Sotheby’s
Over the last few years, the real estate market has gone from having an incredibly-high foreclosure inventory, rapidly-decreasing home prices, and staggeringly-low home sales to relatively steady progress toward recovery.The worst is finally behind us and many areas throughout the country are starting to make significant strides toward real estate market recovery.
In fact, according to the S&P/Case-Shiller index, home prices are on the upswing.
Specifically, when looking at a year-over-year comparison of home prices, we have reached the highest annual increase in two years. Home prices rose 4.3% in October 2012 in comparison to October 2011.
While some states are still struggling, others are making huge progress. For example, Massachusetts home sales have increased 38% from November 2011 to November 2012, while home prices also increased 2%.
Even more importantly, the number of home sales in the month of November throughout the state was at a level that has not been seen since 2005.
At the same time, commercial real estate markers are also starting to show signs of progress. In Nashville, for example, everything from stable rents to new commercial real estate construction projects is indicative of progress in the commercial arena.
Taken together, these reports show that real estate market recovery is underway — both in residential and commercial arenas. Therefore, those looking to take advantage of low home prices, low interest rates, and distressed properties should act now as these factors will more than likely not be around much longer.
Where, exactly, should you consider investing? Apparently coastal towns should be on your investment radar.
Coastal Towns Real Estate Market Booms
If you are looking for a real estate market that is booming (or will more than likely be booming in the near future), then look to your coastal towns — specifically those in Florida and California. Beach homes are quickly leaving the market as investor demand is rising, which is turning the “buyer’s market” into more of a “seller’s market.”
This is exactly what is happening in Jacksonville Beach, Florida. Investors and potential homebuyers are quickly snatching up beach properties off the market while home prices are still attractive. One buyer has received a flood of calls after only two weeks on the market and can almost name her price. More than likely, this same trend will quickly become apparent in other beach towns as well.
At the end of the day, there are still some incredible deals on the market as home prices and interest rates are still incredibly low. If you are looking to take advantage of these great prices then start your search today — these discounted properties will not be on the market forever, especially if you are looking for a great, in-demand location.