What can we learn from metro with the highest price gains?
Should I sell?
At the very least, if you own property in one of these metros, you should be pausing for a moment to determine what your best next step should be. Is it time to sell? If you believe that you are at the top of the market, it may mean this is the right time for you to cash out and put your equity into something else that will provide a greater rate of return. Despite a year of the highest price gains, this trend may not last in your area and selling at the high point could be a big win for you.
Should I buy?
After taking a closer look at the markets on this list, it may become clear that while it has had the highest price increases over the last year, this is just the beginning! The reasons for these price increases are solid and indicate migration of people to these metros that will continue to need access to housing in the future and that means a robust rental market. Or, these are the highest price gains this metro will ever see and there are no solid underpinnings that indicate further growth.
Doing your due diligence.
Either way, lists like this should just be a jumping off point. You always need to put time aside to examine these markets more closely to determine if this is the right time to buy or sell property there. I would also add that you can do a great deal of the work right from your computer, but unless you have been an investor for a very long time and have trusted advisors in the area of the property to examine it for you, you should always take the time to physically visit the property before you actually buy.
Check Out The Last Show!
This week, we are going to gaze into the crystal ball. Several things are going on right now – including the growing use of the adjustable rate mortgage – that I believe set the stage for a potentially market killing outcome. Follow along with me in todays show and see if you agree. If I am right, we could be heading into some very tough times over the next few years.