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The real-estate roller coaster has dominated business magazine covers for several years now. A steady stream of cover stories first advised homeowners on how to capitalize on soaring home values, and then suggested ways to survive the ensuing crash. It looks like we’ve come full circle with Business 2.0’s cover story, “How to play the real estate bounce-back.”
Well, maybe not full circle. The magazine isn’t suggesting the housing market meltdown is over. However, the publication worked with Moody’s Economy.com to identify 10 cities where prices may have bottomed-out and where investors can get property on the cheap.
Take Dallas-Fort Worth, where projected median sales prices for single-family homes are expected to increase 6.4% in the next two years. The city is adding jobs at twice the national rate--in high-paying fields to boot--which means an influx of new residents looking for homes.
Indianapolis, with a two-year projected price growth rate of 6.3%, is another pick. According to the story, home values there didn’t spike the way they did elsewhere and the housing market hit bottom much sooner than other parts of the country. The local economy, with a low unemployment rate and stable workforce sectors, looks promising.
New Orleans is still in rough shape two years after Katrina, with half of the city’s schools and hospitals closed and more than a third of the population displaced. But distressed properties are selling at deep discounts and the need for affordable housing is strong, creating opportunities for speculators to renovate and resell.
Other cities include Atlanta, a top destination for young professionals and a major transportation hub, and St. Louis, which was nearly unfazed by boom-and-bust market fluctuations and is experiencing an urban residential up-tick. Houston, Austin, Mobile, Memphis, and Montgomery also made the list.
Copyright © 2008 Donald W. Reynolds National Center for Business Journalism