Texas has not been spared from the housing market crisis, with foreclosures and REO homes for sale also numbering in the thousands in most cities of the state. However, some real estate market analysts believe that certain areas of the state are ideal for real estate investors despite the ongoing downturn in the housing industry.
According to Local Market Monitor (LMM), the cities of McAllen and Austin in Texas are two of a handful of areas that can be considered good bets for real property investors. Despite the impact of foreclosures on most areas of the state, including foreclosed homes in San Antonio, TX, these two cities topped the list of housing markets that can provide potential benefits to property investors.
For those who wish to invest in foreclosed homes in Texas and existing dwellings and other types of real estate, Austin and McAllen offer great opportunities since they are considered as two of the steadiest property markets around. LMM stated that the two metro areas did not suffer from drastic price changes like other areas did during the period 2001-2006.
Because of the relatively steady condition of these markets, the cities were able to avoid the market bust that affected majority of metro areas in the U.S., particularly when foreclosed properties and REO homes for sale started pouring into the residential market. The areas are also supported by a strong job mix that leans toward industries like education and government.
LMM explains that despite the presence of significant foreclosed property listings, areas with a high percentage of employment in these two sectors are usually stable. The research firm also stated that cities and counties that rely heavily on industries like finance and construction are the ones most likely to have suffered from the housing market crisis.
The real estate-focused firm also revealed that the ranking where Austin and McAllen lead the way is focused more on regions that have the highest chances of rebounding and have the biggest tendency to mount a property price appreciation. So, despite the continuous presence of foreclosed houses and REO homes for sale, the cities of McAllen and Austin are probably the best bets for real estate investors right now.
