In its 4th quarter report of 2006, the real estate information site estimates the home value trends for the U.S. and 75 metropolitan areas. According to the data from http://Zilow.com home values are now declining slightly on a year-over-year basis for the first time in a decade after years of appreciation.
Zillow's home value data goes back to 1997 and reveals the depreciation of home value rates at 0.48 % year-over-year at the national level. The depreciation in home value every quarter is at 4.77 %. Zillow's appreciation rate is based on the value of all homes in an area, including those that were sold.
Although there is a fall in the over-all home price growth, areas such as Seattle and Portland are experiencing a surge in home values at good appreciation rates. Besides national home values, the report also presents comprehensive data on local market price growth and decline in 75 metropolitan areas. The Zillow report gives detailed data on home value changes for counties, cities, neighborhoods and ZIP codes in U.S.A.
The top 5 metro areas with the highest price growth, year-over-year, are:
1. Lakeland-Winter Haven, Florida, with an appreciation rate of 25.88 %
2. Yuma, Arizona, with an appreciation rate of 25.66 %
3. Myrtle Beach, South Carolina, with an appreciation rate of 21.24 %
4. Flagstaff, Arizona, with an appreciation rate of 19.02 %
5. Ocala, Florida with an appreciation rate of 17.56 %
The 5 metropolitan areas that have the most declining home values, year-over-year, are:
1. Panama City, Florida, with a depreciation rate of 11.84 %
2. San Luis Obispo-Atascadero-Paso Robles, California, with a depreciation rate of 11.35 %
3. Punta Gorda, Florida, with a depreciation rate of 9.23 %
4. Sarasota-Bradenton, Florida, with a depreciation rate of 8.99 %
5. Greenville-Spartanburg-Anderson, South Carolina, with a depreciation rate of 8.73 %
The Zillow national report also includes the top five most expensive and least expensive metro areas measured by the Zindex home value indicator.
The top 5 metro areas that are most expensive are:
1. San Francisco- oakland San Jose, California at $684,459
2. Salinas, California at $654,503
3. Santa Barbara-Santa Maria-Lompoc, California at $627,323
4. Honolulu, Hawaii at $626,452
5. Los Angeles-Riverside- orange country , California at $545,409
The top 5 metro areas that are the least expensive are:
1. Davenport-Moline-Rock Island, IA-IL at $86,201
2. Peoria-Pekin, Illinois at $91,984
3. Greenville-Spartanburg-Anderson, South Carolina at $96,508
4. Tulsa, Oklahoma at $97,186
5. Dayton-Springfield, Ohio at $103,729
Even within these markets, there are hot and cold housing segments of the community. Be sure to seek out the services of a local real estate agent , who can advise you about local market conditions that impact the price of homes, condos and other types of real estate.
HOW TO INVEST IN REAL ESTATE BUSINESS?
A successful real estate investor, you must avoid potential losses that could quickly put you out of business. Avoiding such potential keeps you safe and successful in your real estate investing business.
Follow these 6 tips to stay safe and profitable as a real estate investor.
1) Buy properties with equity
This is a simple, golden rule. If there is no immediate equity, stay out it.
The real estate market is unlikely to improve drastically in the foreseeable future, so do not bank on future profits from increased value.
In the current real estate market, too many properties are sitting with no buyers. Even banks are offering properties at deep discounts, as much as 30%.
If you buy directly from motivated sellers, focus on those properties that have immediate equity even if you use creative means of financing such as lease options.
2) Know your area
Even with equity, you must make sure you buy houses in the right neighborhood.
It also means that if you decide to keep it, you might not get good tenants.
Focus on areas that people like. Can you live there? Can you let your kids grow up there?
Does this area show growth and improvement for future?
If you answered yes, then this may be a good place to invest.
3) Is there demand for rental properties?
If you buy houses to hold, you probably need to rent them out. Can you easily rent out properties in that area?
If you cannot sell it right away, can you rent it out? In case of unforeseen circumstances, this will cushion against possible losses.
4) Think outside the box
Sometimes even with little to no equity, you could still make money if you did lease options, rent to own or owner financing.
If you get a property with equity and sell it on terms, you can make a profit right from the beginning.
Consult an attorney regarding the real estate transactions you do.
5) Invest little money
If things did not work out as expected, how much money can you lose? The less money you put in, the less you stand to lose if the deal does not work out.
This applies whether you get a traditional bank loan or buy on terms.
6) Use private money
A ready supply of quick cash for your deals is a must for successful real estate investing. You can buy any type of properties, even on terms.
For example, you cannot acquire a lease option property using a bank loan, but can do so with private money.
It is necessary to have a good real estate investor website attracting private money investors for this. This website will tell your story for you.
Once you have private money investors, the sky is the limit.
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