Norada Real Estate Investments

Real Estate Outlook: Prices Stabilize

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For the first time in a long time the real estate market is showing us more positive signals than negative.  Nominal price drops in 883 core based statistical areas have finally stabilized, showing no declines in the past two months.  This is significant because we must see a flattening out in the market before we can see a cyclical turnaround.  We’ve also seen prices hit bottom in even the hardest hit markets in California, Nevada, Florida and Arizona.  Therefore, prices are not likely to drop much further.

In its latest quarterly report, even the National Association of Realtors (NAR) has seen a similar bottoming out in prices.  There are even signs of a turnaround in several key markets.  Year over year, homes sales were up in 26% of all states and 35% of all Metropolitan Statistical Areas.

The biggest prices jumps were in Yakima, WA at 8.9%, Binghampton, NY at 8.7%, and Amarillo, TX at 7.2%.  However, nationally the median sales price is still down by 7.6% from the second quarter of 2007 at $206,500.  And new housing starts fell by 3% last month primarily due to unsold builder inventories.

All this has prompted larger investors to jump in and start buying packages of properties, sometimes 10 or more.  So if you’ve been waiting on the sideline for the real estate bottom to arrive then your opportunity to start buying investment property may finally be here.

Guide to Setting Rental Rates

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Guide to Setting Rental Rates

Setting the right rent can be one of the most difficult areas for many people who are investing in rental property.  If your property rents out in no time, it could be an indication that you are not charging enough rent.  On the other hand, if your property seems to take a long time to rent out, it could be a clear indication that your rent is too high.  So, how do you go about setting a rental rate that is in line with the current market?

One of the best places to start is the local newspaper.  It is imperative that you do some research to find out what rent prices are driving the local market. Location is the most important factor in determining rental rates. For example, a three bedroom, one bath home in one part of town may rent for $1,100 a month while a similar property on the opposite side of town may only be able to draw $900 per month.

[Read more…]

2008 is the Year to Invest

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With interest rates still at historic lows, and investment opportunities in single family homes abundant, 2008 may one of the best years to invest in 30 years.

Even if prices drop a little more within the next twelve months, you may still be getting a great deal over the long term given the low interest rates which may not be around in the years to come.

It is best to stick to well-located detached single family homes in well researched markets that offer good prospects for growth and resale down the road. Middle of the road, bread-and-butter homes might be best in most cases for attracting your largest resale market.

Duplexes also make for smart investments but remember they are a little more difficult to sell because your typical buyer will probably be another investor.

And finally, avoid condos since you lack the control you have in single family units. Condos also require extra due diligence to make sure that you are not buying from speculators or developers at prices above market value or where there is excess inventory for sale.

The Housing Crisis Is Over

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The dire headlines coming fast and furious in the financial and popular press suggest that the housing crisis is intensifying. Yet it is very likely that April 2008 will mark the bottom of the U.S. housing market. Yes, the housing market is bottoming right now.

How can this be? For starters, a bottom does not mean that prices are about to return to the heady days of 2005. That probably won’t happen for another 15 years. It just means that the trend is no longer getting worse, which is the critical factor. Most people forget that the current housing bust is nearly three years old. Home sales peaked in July 2005. New home sales are down a staggering 63% from peak levels of 1.4 million. [Read more…]

The Worst Real Estate Markets

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The worst performing markets, according to a recent report by the Office of Federal Housing Enterprise Oversight (OFHEO), where property values are falling the fastest in the country are Florida with eight (8), California with six (6) and Michigan with three (3).

Merced, California has the honor of being that fastest deflating city in the country with an annual depreciation of -13% over the past 12 months. This is followed by Punta Gorda, Florida at -12%, and Santa Barbara, California, one of the most expensive markets in the country at -12%.

So where are some of the best markets? Well, the US Gulf Coast where markets are rebounding from hurricane Katrina happen to have some of the best investment opportunities for investors today. Housing is affordable, rental numbers make sense, and property values are increasing between 6% to 7% per year. Those are some of the biggest reasons for our Bayside Park investment opportunity in Waveland, Mississippi.

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Norada Real Estate Investments 30251 Golden Lantern, Suite E-261 Laguna Niguel, CA 92677

(949) 218-6668
(800) 611-3060
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