Local Real Estate Market Trends
Most experts expect the housing market to slow further in 2008. Having dropped 3.1% during the first quarter of 2008, the housing slow down is showing no sign of stopping.
On the bright side, there are local markets which are doing well. These markets are mostly costal 24-hour cities with excellent infrastructure. Their downtown office space in these cities should be a good investment. These cities have invested in fixing previously run down areas and have seen prices rocket. Though the market may be soft, the weak dollar keeps the market strong by making these locations affordable to international investors.
Here are some local markets that are doing well.
Seattle – A diverse economy and the presence of corporate heavy weights has lead to this city being a prize area for investment and new building.
Boston – Recovering from the millennium dip, new business has boosted interest in this city. However questions remain about the cities residential rental market.
Washington DC – Government doesn’t stop and this has lead to stability in the Washington market protecting from sharp downturns.
LA – Although Orange County has suffered a downturn as businesses move to cheaper areas, the LA market is still very strong with the nation’s top port.
San Francisco – Resurgence in technology business has lead to prices increasing even as supply increases.
San Diego – With businesses moving out San Diego’s downtown is ripe for new growth opportunities.
Denver - the only non costal city in this list, Denver has managed to extend their prime locations by linking the suburbs to them with a high speed rail link.
Smaller markets include San Jose, Honolulu, Austin, Sacramento, Portland, Salt Lake City, Orlando and Tampa and Nashville.
With recession expected this year and to last at least the next 1 to 2 years and house prices to fall significantly further recovery is not expected anytime soon yet wise investments can still be profitable.