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Finding The Common Strength

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By : Richard Ray    99 or more times read
It doesn’t take much to feel little more than gloom about the prospect of real estate as an investment tool. You can even begin to wonder how much you may ultimately lose if you have to move. However, recent indicators seem to suggest that a turn around is happening even as some housing prices continue to decline.

San Francisco joins six other metropolitan areas in what appears to be remarkable returns on property investments within two years. According to experts, “One reason for the sharp comeback is that much of the area's excess inventory will have been sold. It's already dropped by nearly in half over the past year.”

In other words San Francisco remains a highly desirable area in which to live. Homes that have flooded the market are slowly being purchased. Yes, the purchase price has come down making it a bargain to buy when compared to prices even two years ago, but neighborhoods are filling back up and the good news is spreading.

A cautionary note should be placed here I suppose. Experts predict that some sense of normalcy to the market may still be a couple of years away, but most analysts will take all the good news they can find – and they’re finding it in San Francisco.

The good news doesn’t stop there either. In places like Seattle, Pittsburgh, Rochester, Memphis, Oakland and Birmingham residents are seeing a sense of stability returning to the housing market.

In many of these cities there is a robust local economy that has helped keep families in their homes and allowed vacant homes to become occupied sooner.

Pittsburgh has one of the lowest median home prices in the nation making it a promising location for families who want to live in a metropolitan area without the price tag often associated with location. Experts say, “The area's economy has transitioned from steel to services, finance, bio-med, health care and other more sustainable industries. This diversification has enabled the area to muddle through the recession with less angst than many other places.”

Rochester has learned its own sense of diversification to survive. The benefit of surviving this approach is that there really was no bubble bursting in Rochester. Housing prices were already low so the overall loss was minimized. The foreclosure rate there was about a third the national average.

Low home prices coupled with high unemployment would seem to be mixed news for Memphis, but their location is still a huge calling card to many would be homeowners. The population has risen nearly 7% in the last ten years. This means demand for available homes continues to be strong.

Oakland provides a more interesting story. High unemployment and a home value drop of nearly 50%. However, this creates a value for people willing to move to Oakland. This city is just as sought after as virtually any other California metro area and the current home values may welcome a new set of investors anxious to own California property.

Market volatility does not describe Birmingham very well. Experts report that this city has experienced, “Steady growth rather than big peaks and valleys.” This provides a welcome environment for what may feel like a temporary set back rather than ultimate devastation.

In all seven communities there is a common thread. Each location has strengths that outpace weaknesses. By tapping into the strength the potential for a return to normalcy seems almost assured. Low house prices, location, industry or a robust economy – each can play a significant role in filling vacant homes and returning the status of the city real estate to more profitable ends.
Richard Ray, author of this article, writes for the Householders Guide where you can find up to date Real Estate News and Household Information.

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