I can tell you that definitely Fairfax County is one of the highest… One of the properties I did out here was a townhouse then bought for $300,000 and 6 months later it was worth $360K… not bad for 6 months. Plus all the houses out in FFX Cnty are super expensive especially Reston & Great Falls. Reston can’t find a Single Family for under $600K; Great Falls probably under $1 Mill. and they still are appreciating!
Posted by John (OR) on January 29, 2005 at 22:12:40:
Be careful when looking for hot markets.
If a market is ‘hot’ most everyone knows including the sellers.
Hot markets rarely cash flow. Why should they, people will bid up the
price because it is ‘hot’ and appreciation is all that matters. At least
that is how the other buyer view things.
At some level a hot market depends on the greater fool. Sooner or
later the prices will rise enough that people working for a living can not
afford the payments. As the landlords are not covering their mortgages
with the rents that is not going to keep things moving up.
Hot markets normally depend on demographic shifts and a rapidly
growing economy. Having started my investing career in CA I know that
even hot markets there have seen flat patches or down years in the last
Posted by gerald(tx) on January 28, 2005 at 24:28:11:
Are you sure that is the best approach? There may be gold in your own backyard. Let me add my two cents and put things in perspective.
In these super hot markets, everyone has the fever, property owners who are not investors, are “accidentally” making money simply by luckily being in a rapidly appreciating area. Therefore, there are few bargains to be found. You usually pay full price and hope for another 20%(?) appreciation.
But think, can’t you buy for at least a 20% discount in a flat market? I sure can. If you were to invest the same dollars and resell, couldn’t you accomplish the same thing – and without the risk? The profits sound higher because the dollar value is higher, but percentage-wise the money is there.
And about the risk, the hot markets are the ones for the potential bubble to burst, or at least fall back and stand still. You don’t have that risk in your market.
With my luck, if I were to move into those hot areas, it would be like the old saying, “the band always seems to stop playing just when the new people are just getting on the dance floor.”
I’m in a flat market here in DFW, but feel a lot safer than those flirting with market tops in the hot areas. And I can make just as much money.