5 Best Housing Markets for the Next Five Years
NEW YORK (MainStreet) -- Market watcher HousingPredictor.com thinks U.S. home prices could keep falling across much of America for years -- but believes a handful of markets offer great investment opportunities right now.
"When most people figure out that this really is a great time to buy in some areas of the country, it will be too late to make a really good profit," HousingPredictor.com's Mike Colpitts says. "In some areas, it is a great time to jump back into the market -- but you have to be very careful
The firm recently analyzed 230 cities' housing and economic conditions and found about a dozen it expects will produce double-digit price gains over the next five years.
"These are places that have better job prospects and stronger economic conditions than most other areas," Colpitts says.
For instance, HousingPredictor.com expects upscale Los Altos, Calif., to see prices rise 15.5% over the next five years as staffers from nearby Facebook(FB) use gains from the company's recent initial public offering to buy homes.
Here's a look at the five U.S. markets HousingPredictor.com thinks will offer the best average price appreciation over the next five years.
Listing information comes from Realtor.com, the National Association of Realtors' official property-listing site, and excludes mobile homes, parcels under agreement and houses still under construction.
Fifth-best market: Medford, Ore.
Expected five-year price gain:13.9%
This metro area of some 200,000 people just north of the California border in south-central Oregon has had high unemployment in recent years, but Colpitts sees an improvement coming.
"Medford has grown a lot over the past decade and has more employers these days," he says. "More jobs translate to more home purchasers."
Historically a farming area, Medford has become a regional hub for medical care, as well as a destination for more and more retirees.
The city also hosts the New York Stock Exchange-listed Lithia Motors(LAD) chain of car dealerships, the famous Harry & David food company (parent of the Fruit-of-the-Month Club) and a few other important employers.