At the end of 2018, there was a lot of speculation about whether or not the housing market 2019 was going to provide us with a repeat of the unfortunate real estate market crash of 2009. However, many experts quickly dispelled this market forecast.
Still, an interesting new report released by LendingTree shows that while some real estate markets have recovered since 2009, others haven’t fared as well.
LendingTree studied 50 of the largest metro areas in the US housing market 2019. The goal was to analyze one major point: house values. During the housing crash of 2009, most property owners across the US saw a huge drop in the value of their property. The report aimed at discovering where real estate value has recovered compared to where it still hasn’t recovered to pre-crash numbers.
Because the Great Recession also resulted in a drop in income and a major rise in unemployment rates, LendingTree also set out to see how these two elements have recovered in different locations across the nation. Here is what they found:
While a few major California real estate markets like San Jose, Los Angeles, and San Francisco have recovered, the property values in other markets have yet to recover at all. Most notable is the Chicago real estate market as well as Baltimore and New York.
Why It Matters to a Real Estate Investor
While homeowners and real estate investors in certain markets have been more fortunate than others over the past decade or so, why is this key info to know right now for a 2019 real estate investor?
Well, there are two aspects to this. One, you want to invest in real estate property in a healthy market that has recovered well since 2009. For example, the Las Vegas housing market 2019 has recovered quite steadily across all aspects and would make for a great place to buy rental property this year.
On the other hand, it’s a good idea to try to seek out emerging real estate markets- markets that haven’t fully recovered their property values but in the housing market 2019 and beyond, are set to take off. What this means is that, if you can pinpoint this kind of market, you’ll find relatively affordable real estate prices right now. And in the near future, you will enjoy high property appreciation. All the while, you can rent out the property (as a long-term rental or Airbnb, if the law permits) and make steady positive cash flow. Ultimately, this information can help you find some of the best real estate investment opportunities. Just be sure to do your market research and choose a market that is forecast to boom in the near future.
Found one? Then start looking for a rental property right now before someone else takes advantage of the deals.