December 22, 2021

10 hidden gems of the housing market to invest in real estate in 2022

December is the time to look back and recall how the year was. And for real estate, it’s was a hot one! 2021 was the strongest housing market in 15 years, according to the National Association of Realtors (NAR). Sales started to normalize from January to August but picked up steam again in September and October.

In particular, single-family existing-home prices rose at the fastest pace in five decades at an average year-over-year pace of 18%. Why? Well, because of strong job growth, historically low mortgage rates, and a post-pandemic recovery in household formation, mixed with supply bottlenecks caused by the pandemic and slow housing construction.

If you tend to invest in houses on the market, you must have seen everything we’re describing. Nevertheless, all hope is not lost since some housing markets have strong conditions but are currently undervalued. Keep reading to find out where they are!

Top 10 hidden gems of the housing market in 2022

NAR’s 2022 Housing Market Hidden Gems identified ten housing markets with “strong underlying housing market fundamentals but where home prices are still undervalued and relatively affordable.” They are all located in the “Sunbelt” area, particularly in Texas, Florida, Alabama, Arkansas-Missouri, Tennessee, South Carolina, and Arizona.

In no particular order, these are the hidden gems:

  • Dallas-Fort Worth, Texas
  • San Antonio-New Braunfels, Texas
  • Palm Bay-Melbourne-Titusville, Florida
  • Pensacola-Ferry Pass-Brent, Florida
  • Daphne-Fairhope-Farley, Alabama
  • Huntsville, Alabama
  • Fayetteville-Springdale-Rogers, Arkansas-Missouri
  • Knoxville, Tennessee
  • Spartanburg, South Carolina
  • Tucson, Arizona

These are great places to invest as soon as you can! Especially if we consider that they are expected to experience stronger price appreciation in 2022. So, how can you do that? On the one hand, you can do so with the vastly known approach of checking out houses on the market. You can run comps and compare similar places to spot those below the housing market value.

However, imagine how much you could profit from working with off market properties? If off market listings are usually an asset, they can take your return on investment to a whole new level in undervalued markets! Typically, distressed sellers are a source of great deals with considerable benefits. The thing is that they are in a hurry and need to solve a situation right away, so investors can either buy their properties with significant discounts or do so at auctions.

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But in undervalued markets, those discounts are placed on top of below-the-market prices! Therefore, if the NAR is correct and these housing markets appreciate sometime next year, you could buy now and hold the property for a few months to boost your returns.

Luckily for you, we have something that could help you spot off market properties right away! Yes, we’re talking about our Off Market Leads, which comes with up to 10 types of motivated sellers in Texas and Florida, and up to 5,800 leads per month. Plus, the premium version also includes the skip tracing information of homeowners and close relatives, so you don’t waste time – nor money – locating them!

These hidden gems are not so secret anymore. They are drawing attention, and it’s only a matter of time that they are adequate to the housing market value, mainly if we take into account two details. First, Dallas-Fort Worth and San Antonio-New Braunfels had the highest net domestic migration in 2020. Second, the housing supply will only modestly increase next year, pushing prices up at a 5% pace. So, you’d better hurry if you want to seal profitable deals! Not sure? Then ask for a free one-on-one consultation!

Disclaimer: The blog articles are intended for educational and informational purposes only. Nothing in the content is designed to be legal or financial advice.