Steve spoke with Terry Story, a 30-year veteran at Keller Williams. In this installment of the weekly Real Estate Roundup, Steve and Terry talked about some of the most popular places to invest in real estate, who’s investing, and why.

The Hottest Places To Invest Right Now

A lot of real estate is being scooped up in places that might make you scratch your head. On the list? Orlando, Las Vegas, and throughout Arizona. But why? These markets grew fast and were severely overbuilt which means they started to perform poorly- too much supply for the demand.

Initially, people were getting mortgages right and left, namely people who didn’t really deserve the deals they got. As demand for inventory dropped, the markets in these areas crashed. Now, though, there’s plenty of inventory up for grabs and demand is climbing. Homes are actually affordable.

These are also warm areas, which tend to be ideal spots for people who are retired and trying to downsize.

The Midwest

Two more areas in great demand? Places in the Midwest. The entire state of Colorado is seeing a massive influx of people putting down money on homes. Technically, Colorado falls just outside of the traditional Midwest region, but because it borders traditional midwestern states like Nebraska and Kansas, it can easily be considered part of the region. One reason for this influx? There is temptation to believe that it’s because marijuana is legal there. But the reality is that Colorado has so many diverse and temperate cities, there’s a lot to love about living there.

Perhaps the most shocking “hot” place to live right now is Ohio, Cleveland specifically. A lot of money is being poured into areas like Cleveland, and with bedrooms communities around a fairly clean and livable major city, Cleveland is almost a dark horse in terms of real estate.

The South

Texas also being on the list of hottest places to invest in real estate shouldn’t be that surprising. Despite the serious weather issues Texas typically faces – hurricanes, flooding, and extreme heat – the state has constantly been a magnet for home buyers. Why? Housing prices are notoriously good there. You can get a lot of bang for your buck, in terms of property size and square footage.

The Cyclical Nature Of Real Estate

As always, keep in mind that the real estate market is cyclical. An important take away here: watch out for procrastinating. A lot of people sit around and wait for the next recession to start making moves. This is a little backward thinking because you really miss out on the averages.

The truth is that most returns come when the market starts to expand again. Recessions, today, are much shorter than they used to be. If you wait for these, the cost of missing out on bigger opportunities during the wait might prove very frustrating.

If you’d like to learn more about buying or selling a home, or to learn more about Terry, check out Keller Williams!