Rising Home Prices Relocating Buyers and Some Investors

Multiple articles and blog posts are telling us that home prices are rising in many areas of the country, making home purchases unaffordable for many buyers. Some of the cities where price increases have been most noticeable include:
• Las Vegas at 24.9%
• San Francisco at 23.1%
• San Diego at 19.4%
• Los Angeles at 18.9%
• Atlanta at 16.8%
• Other cities include Denver, Miami and Portland
An article at Nuwire states that nationwide some 33.6% of homes are unaffordable for buyers making median income. Even when they can afford a home, many buyers are finding themselves outbid for the best available. Some lenders are moving back to less-than-optimal loan types and lower down payments to aid home buyers … a little of the past perhaps coming back to haunt us.
What about Investors?
Many are turning their attention to smaller markets. Cities such as Provo, UT and Clarksville, IN are providing more opportunity and higher yields. There is less interest on the part of lenders to finance deals in these markets, but that’s slowly changing. If the numbers work, you’re likely to find a willing financial partner.
Jackson, WY and Crown Point, IN were also cited as examples of smaller cities which inherently carry more risk, but they’re drawing investors and financing due to higher returns. An added draw for investors and lenders is that these markets aren’t nearly as competitive as the larger cities. If you’re interested in investments outside your local area, you may want to cast a wider net and take in some smaller cities.