There’s been plenty of demand for housing because the COVID-19 pandemic took maintain. With mortgage rates plummeting, consumers are lining as much as lock in house loans — however they want properties to go along with them, and low stock is driving costs up. That is excellent news and dangerous information for actual property traders.
In case you’re an investor who makes a residing flipping houses, you could discover that you will be paying a premium on your subsequent property within the coming months. However you may additionally achieve commanding prime greenback for a flipped house, particularly in areas the place there’s been an uptick in demand. As such, it pays to know the place these areas are.
Fortunately, actual property service Intelligent has compiled a list of metros the place consumers are clamoring for properties. Listed here are those which have seen the biggest will increase between early April and mid-June.
1. Albany, New York
New York Metropolis actual property could also be sluggish proper now within the midst of COVID-19, however the Albany space is booming. And in June, the median itemizing worth was $12,612.50 greater than it was again in April, when housing demand declined.
2. Houston, Texas
As was the case in Albany, purchaser demand decreased within the Houston space again in mid-April. Though properties within the Houston metro are at the moment sitting in the marketplace for roughly six extra days than they had been in April, the median itemizing worth is now $19,770.40 greater. What’s distinctive to Houston proper now could be that there is extraordinarily low housing stock beneath the $500,000 worth level, which might be resulting in extra purchaser demand.
three. Harrisburg, Pennsylvania
The Pennsylvania housing market took successful at the beginning of the pandemic, when the Northeast emerged as its epicenter. However now, purchaser demand is spiking as instances within the space have declined. In reality, sellers had been in a position to ask for a median of $18,129 extra for his or her properties in June than they may in April, and over 76% of properties have been bought inside 14 days of itemizing.
four. Dallas-Fort Price, Texas
Houston is not the one metro space in Texas that is scorching proper now: The Dallas-Fort Price space has additionally taken off. The variety of properties below contract elevated considerably between April and June, and the median variety of days in the marketplace dropped 34%.
5. New Orleans, Louisiana
New Orleans is thought for its restaurant and nightlife scene — actions which have largely been off limits because the COVID-19 pandemic started. As such, you’d assume purchaser demand can be waning in New Orleans, however not so. The median itemizing worth for obtainable properties elevated by $12,633 in June, and pending gross sales have elevated as properly.
Must you keep away from these scorching markets, or dive proper in?
Investing in a housing market with excessive demand generally is a combined bag. On the one hand, you would possibly pay extra for a house, however in return, you’ll have a neater time promoting it and scoring the asking worth you need. In reality, you could even get greater than your asking worth if elevated demand results in bidding wars. It due to this fact pays to weigh the professionals and cons of buying in these and different scorching markets earlier than shifting ahead.