Posts Tagged ‘real estate investors should avoid’

HomeVestors Knows What Locations Real Estate Investors Should Avoid

Friday, January 31st, 2014

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There are a number of regions in the United States that are best avoided because they are reducing in population and have a high unemployment rate. 

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years.  The company knows that there are a number of regions in the United States that real estate investors should avoid.  All of these locations have a number of factors in common, mainly high unemployment rates and falling property values.  Those who analyze a market before investing in it are bound to cross these locations off their list before becoming committed to an investment.

In order to have a good idea of what locations real estate investors should avoid, understand what constitutes a bad market.  Those investors who properly research an area before becoming involved there can easily pinpoint bad real estate markets.  When a community is decreasing in population it is usually because the region doesn’t have enough jobs to support the area.  As soon as this happens, the property values are going to decrease and the entire area is going to lose its desirability.

Investors who see an area that is decreasing in population and decide to invest in it because they believe that prices might jump back up in the near future need to properly analyze this decision.  More often than not, industry needs to return to an area before property values increase again.  Real estate investors should avoid these areas unless they see upcoming future potential in the economic sector.

Some cities that exemplify these traits are Hagerstown, MD, Ocean City, NJ and Wichita Falls, TX.  These regions are seeing population declines and respective property value declines.  There are a number of people who are looking to sell their real estate in these three locations, but are having a tough time doing so, as most investors know that these areas don’t have any profitability.

Hagerstown, MD has seen its property values drop 1.4% 2013 and experts are expecting that are large number of people will leave the area in 2014.  The region is losing industry and isn’t able to support its population.

Ocean City, NJ has seen its property values drop 2.1% in 2013 thanks in part to Hurricane Sandy.  The population increases dramatically in the summer, but fewer people are flocking to this beach city presently.

Wichita Falls, TX has seen its property values fall 5.7% in 2013 and it doesn’t have enough industry to keep it afloat.  Those who are considering leaving the area are likely to list their property for an attractive price in order to sell their house.

Those who have an understanding of what regions real estate investors should avoid can immediately dismiss them and move onto greener pastures.

About HomeVestors of America Inc.

Dallas-based HomeVestors of America, Inc. is the largest buyer of houses in the U.S., with 50,000 houses bought since 1996. HomeVestors trains and supports its independently owned and operated franchisees that specialize in buying and rehabbing residential properties.  Most commonly known as the “We Buy Ugly Houses®” company, HomeVestors strives to make a positive impact in each community.  In 2012, for the seventh consecutive year, HomeVestors was among the prestigious Franchise Business Review’s “Top 50 Franchises,” a distinction awarded to franchisors with the highest level of