Real Estate Investing

California is getting closer to having one state-wide MLS system, according to the San Francisco Chronicle.  Expected to be available in 2009, 66 local REALTOR® associations and three regional MLS groups — representing 60 percent of the market in California — have signed nonbinding letters of intent to participate in CALMLS so far.  Read more from Realtor.org.  In my own MLS area, we’ve faced challenges simply to get the various associations to embrace on preferred lock box … this will be very interesting to see how one MLS works itself out.

Donald Trump is lending a helping hand to Ed McMahon who has been facing foreclosure of his personal home following health issues.  He is buying the home so he can lease back to McMahon.  Says Trump, “When I was at the Wharton School of Business I’d watch him every night,” the mega-developer said. “How could this happen?”

Austin, Texas is set to recover from the real estate slump faster than the rest of the U.S., according to the Austin Business Journal. 

In the coming year Austin will outperform the rest of the country in job growth and in the health of its housing market, according to Mark Dotzour, chief economist at Texas A&M University’s Real Estate Center.

Finally, ghost towns are popping up all over the country due to halts in new construction developments.  According to MSNBC,

The Colonial-style brick home had four bedrooms, three-and-a-half bathrooms, and designer touches and offered everything they expected in a town known for great public schools and homes fit for Ford execs. 

Everything, that is, except neighbors.

When the MacDonalds arrived, there were fewer than 15 homes in Kirkway Estates, where 179 were planned. Their home was the only one built thus far on a cul-de-sac with six lots.

I’ve seen many developments that look like this.  There’s a monster-sized subdivision near where I live and I’ve seen that construction has come to a skidding stop.  I have to wonder what all those workers are now doing to earn a living.

Real estate investing is a hot topic right now. Interest rates are low, prices are low — what’s not to love, right? If you’re looking to seize the day, keep one thing in mind. Go west, young man … or east, depending on where you sit as you read this. The Lonestar State is the place to be and other western states like Utah, Colorado and New Mexico are also getting some nods. It’s a veritable gold rush for the 21st Century.

Of course, the list of where to invest in real estate varies depending on which you look at. We looked at the Top 10 list compiled by real estate valuation company Fiserv Lending Solutions, the Top 10 list compiled by investment company HomeVestors, and the Top 7 compiled by HousingPredictor.com. One thing all three of these lists have in common is that Texas cities appear in the top three listings. Some say El Paso and McAllen, while others say Dallas, Houston or Austin. Regardless, it’s clear that Texas is the place to be. San Antonio and Ft. Worth are even mentioned in lower spots on some of the lists.

Actually, plenty of developers, second home buyers, snowbirds and vacationers truly are turning their sights from Florida to Texas. This has been a known fact for a while, but home prices are rising fast so capitalize before it’s too late.

Interestingly, Syracuse and Rochester in New York state made one list, with an expected 3.60% and 4.20% price appreciation this year. Asheville, North Carolina made another list because it has seen steadily increasing prices with no signs of slowing down and pro golfer Tiger Woods recently announced his plans to build a golf course megalopolis there. I am an avid golfer, but given the choice, I’d still have to head southwest, where the prices are lower and appreciation forecasts are greater. Grab your gun, boots and spurs — Lonestar State, here we come.

As if there wasn’t already enough temptation to move to Hawaii with all the sand and surf and pineapple, there is now yet another reason. This state is the strongest in America in terms of the real estate sales forecast for 2008, according to HousingPredictor.com. Honolulu, Maui and Kauai are expected to appreciate at 6.8, 5.6 and 4.9 percent, respectively. The cities are currently ranked second, fourth and ninth, respectively, among the top 25 appreciating U.S. markets.

Housing Predictor takes its data from independent research and analysis of individual communities across America. The site says its forecast estimates in 2007 proved to be about 86% correct — no easy feat in the tumultuous real estate year that was. Interestingly, the site’s list of the top 25 appreciating markets for this year are scattered evenly across the United States. Other than Hawaii, five other states had three cities make the list: Texas; Mississippi; Idaho; Washington and North Dakota. The even scattering from the west coast to the east coast and all points in between shows that the real estate market is indeed not as hopeless as national media would have us believe.

Of course, it was little surprise to see Austin, Texas at number 10 on the list, because this city, with its large white collar high-tech demographic, has consistently defied the trend of low Texas prices. The other Texas cities on the list, McAllen and San Antonio, probably made it on because their real estate prices have little place else to go but up. Plus, Texas is the new Florida in terms of retirees and vacationers. Hawaii has notoriously higher cost of living, so little surprise there. And Manhattan, NY, at number six on the list, may appreciate the projected 5.2%, but it will probably be primarily due to the unbelievable demand for housing there.

With towns big and small across America making the list, Housing Predictor offers hope that the housing market may just pick up sooner than we thought.