Best Markets In The Next Five Years

In the real estate industry, it's all about location. As we're beginning to see signs of a stronger emerging market, some areas are poised for better growth.

According to AOL Real Estate, the following cities are looking good when it comes to annualized changes in home prices between the third quarter 2012 and the same time period 2017. Some of these markets have been hit by big drops in pricing but are now beginning to come back. All the below-named cities are expected to see growth ranging from a low of 8.1 percent to 9.1 percent. A total of 15 cities were named. Visit RealEstate.AOL.com to see the complete list and the financial demographics including income and the unemployment rate for these areas.

The top seven cities, shaping up to be best markets are:

1. Medford, Oregon
2. Santa Fe, New Mexico
3. Panama City-Lynn Haven-Panama City Beach, Florida
4. Sebastian-Vero Beach, Florida
5. Carson City, Nevada
6. Santa Barbara-Santa Maria-Goleta, California
7. Reno-Sparks, Nevada.

Whether you're buying in one of these expected hot markets or elsewhere, the key to finding the right home is to know the area well. If you're moving to a new city, consider spending several weeks in your new potential location. Stopping in for a weekend or even a couple of vacation weeks won't allow you to really investigate the neighborhoods and cities where you might want to buy real estate. Short stints are akin to long-distance dating; you're still in the honeymoon phase. It's ideal to spend an extended period of time in your new potential hometown to understand the job availability, housing market, traffic conditions, weather, and overall culture of the area. It would be so unfortunate to make a move from one area because of something you don't like only to settle into another city with the same or worse issues.

Obviously, again using the dating analogy, no city is perfect; it's about what you can live with. So you might trade heavy traffic conditions in your hometown for light traffic but a little more depressed economy. Having thought your move through will help you recognize how you'll financially compensate in such a situation. Maybe housing is cheaper than where you currently live. Perhaps you work remotely, as so many people do, so settling into a more rural area provides you the privacy you're craving with a more financially feasible price tag.

Another huge benefit is the Internet. Moving to a new city doesn't have to be an overwhelming experience that leaves you feeling like you haven't a clue about the area. Before you even visit a city, you can easily find out important information that's just several clicks away. Visit Google Maps to get a bird's eye view of the area. Visit some of the local online publications to read articles and watch videos of events and happenings in your new city.

But nothing beats the real thing. Get out to your chosen area and meet people in coffee shops, malls, and, using modern technology, social software. You can use Yelp to find out where your “real” and “online” friends dine. Try MeetUps or other social gatherings to help you discover things to do and unique treasures in your new city.

Remember, even a move in the same city can be stressful, let alone, relocating to a new city. Give yourself time to feel at home. Use experts to help with your real estate search. Industry experts will be prepared to give you a good strong understanding of your new city. Relax and remember the journey is part of the enjoyment. 


Written by Phoebe Chongchua
March 8, 2013