Wouldn’t you like to know IN ADVANCE where the hottest housing action will be in the next three months? We’ve got the simmering scoop today. I’m Carole Ellis. This is Episode 35.
Spring is warming up, and a boiling hot summer is coming in real estate. Wouldn’t you like the down and dirty about the markets that everyone is calling the “hottest in the country” in time to get in on that appreciation action? Of course you would, especially since all is not quite what is seems…More on that in just one minute. Before we get started, I want to mention something that is far less hot and far MORE controversial and, surprise of surprises, it has to do with the federal government getting right into the middle of your real estate investing business, as usual. According to new guidelines from the Department of Housing and Urban Development (that’s HUD to friends), landlords who refuse to rent to tenants with arrests and criminal records will now face penalties and lawsuits for discrimination if they’re caught. That’s a BIG DEAL, because landlords often use past behavior to screen for good, reliable, responsible tenants who will RESPECT their properties. Whether you own rental properties yourself, sell to landlords, or honestly, have a criminal record, you must educate yourself on this new ruling immediately. Otherwise, you could find yourself in hot water in a federal court. Check out the full story in our news and networking section at www.rei.today.
Now, back to some hot housing markets that could land the unwary in a little hot water…
According to a recently released study from Realtor.com, there are 20 (count’em, 20) hot markets for spring 2016 based on the number of listing views in the market, short times on market, overall housing inventory, and rising home prices. We’re going to restrict ourselves to the top 10, though you can find the entire list of 20 in the REI Today Vault labeled with today’s episode number 35, but I’d like to take a minute to point out something truly astounding:
Of the top 10 hottest markets for spring 2016, EIGHT of them are in California! Now let’s do a quick run-down:
In 10th place, we’ve got Stockton (California, of course), followed by San Diego, Sacramento, Santa Rosa, and San Jose (all California) in spots 9, 8, 7, and 6. We take a quick trip over to Dallas, Texas for number five, then back to California for Santa Cruz in number 4, over to Denver, Colorado for number 3, and then Vallejo, California for number 2 and…drumroll please…San Francisco for the win as the hottest housing market this spring. And if I blew through those a little too quickly for you, remember you can get them all in the REI Today Vault to review at your leisure. Basically, California is boiling hot, and Denver and Dallas aren’t all bad either.
Now, what to do with this insight. It’s obviously got an expiration date (markets change all the time) so we need to do some fast thinking. First off, think about how this information affects your investing directly. If you are active in these markets, this kind of heat means it might actually be time to get in on the selling action while time on market is short and home prices are high. Most analysts agree that even if California markets are approaching bubble status (and I would argue that they are NOT necessarily doing so, by the way, as you can see in my San Diego case study in the vault featured in episode 30) they are likely to start leveling off by 2017 at the latest, so if you are in a good equity position in any of your properties, it might be time to start thinking about selling for top dollar. And if you’re thinking of getting into any of these markets, using an inside, established source of deals is probably a good way to go since competition is fierce already and getting fiercer. Working with a real estate fund, for example, is a good way to “get in on the inside” in a hot market where there are still good deals to be had (like Stockton, for example) without having to wait on your own investments of time, sweat, and legwork to pay off.
Finally, though, you need to think about your own investing needs on a very basic level: Does it really matter to you where the hot properties are located? In reality, I don’t know a single successful, full-time real estate investor who would say that it is imperative to identify and then participate in a “hot market” in order to be successful in this industry. Instead, think about cash flow, profitable exit strategies, and your unique personal and professional needs and then identify the market, local or otherwise, hot, cold, or otherwise, that meets your requirements.
Now, having said that, I’m betting you, like me, still love those hot market lists, so stop by the REI Today Vault and check out the full Top 20 Hottest Markets for Spring 2016! It’s labeled just like that along with this episode number, 35. And if you’re not yet a member, no worries! text REITODAY no spaces, no periods, to 33444 I’ll provide you with fast, immediate access to all sorts of great trainings, news coverage, interviews, and lot more timely information that will help make your investing safer, faster, and more profitable.
And remember, when you do that, you’ll also be able to GROW YOUR NETWORK by interacting with me and your fellow listeners to REI Today… so stop by to ask questions, make comments and network with other investors across the country. Text REITODAY no spaces no periods to 33444 or head over to www.rei.today/vault right now.
And by the way, speaking of growing your network…Do NOT miss tomorrow’s episode! We’re going to expose the same secrets that the KING of HUGE NETWORKING, Donald Trump, used to leverage one of the worst things that can happen to an investor, BANKRUPTCY, to build a real estate empire and maintain and protect his 10 billion dollars in net worth when things went sour. This is a special expert interview provided by REI Today, and you’re going to love it whether you love Trump or not.
REI Nation, thanks for listening in and always remember this:
Your best investment is your own education.
Carole Ellis is the host of Real Estate Investing Today, a popular 9-minute daily podcast focused on educating real estate investors about the important topics that will make their investing SAFER, FASTER, and MORE PROFITABLE. She's also the editor of the Bryan Ellis Investing Letter. She has more than a decade's worth of experience in and reporting on the real estate industry and, additionally, has written dozens of courses on the topic. Carole lives in Kennesaw with her husband, Bryan, and four children. She believes wholeheartedly that your best investment is always your OWN education.