Property Investors Expanding Their Search Perimeter

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After the housing market collapse of 2007, investors focused their attention on areas with many foreclosures. As the property market is now recovering steadily, they pay greater attention to new and more attractive places which offer higher price gains. In these areas, home buyers can expect increased competition and this may lead to higher prices, especially during the spring house buying season which is characterized by the highest level of activity in the housing market.

The major goal of lenders now is to exploit the recovery of the housing market. They have more or less abandoned cities like Las Vegas and Phoenix which experienced some of the highest levels of foreclosures over the past six years as the competition there is growing. Now investors prefer areas where the prices of houses for sale are close to the national median sales price of $195,000 and where the competition from house buyers is still fairly low. This will allow them to earn high profits as the prices in these areas start growing with the faster recovery of the market.

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In the beginning of 2014, the most attractive place for investors is Baton Rouge, Louisiana. There the share of investor house purchases increased by some 14% from the beginning of 2013. In this city, the price gain for 2014 is expected to be 5.1%.

The highest house price gain for 2014 is projected to be in Greensboro, North Carolina. There house prices are estimated to increase by 6.9%. At the same time, the investment property purchases in the city have increased their share by 5% on annual basis. This means that there is still room for investors to profit in this city. Another attractive location is McAllen, Texas where the annual increase in the share of investor sales is 8% while the projected price gain is 5.3%.

Overall, investment activity in 2014 is expected to increase as the housing market recovers, even though the mortgage rates will most certainly rise.

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

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