The New Real Estate Markets and You

Amid all the slowdown talk are tantalizing tidbits about strong emerging markets. Why all the whispering? The news is good. Some folks don’t want you to know.

Amid all the slowdown talk are tantalizing tidbits about strong emerging markets.  Why all the whispering?  The news is good.  Some folks don’t want you to know. 

What are some of the overlooked markets?  Atlanta, Dallas and Houston are three examples.  They’re strong for the right reasons.  New people, new jobs plus stong local industries such as oil and  convention business.   

There is another important factor which was too often  overlooked during the recent national real estate frenzy.  

Property prices in these example cities are steady and reasonable.  That brings in more business and workers because people can maintain a high standard of living while enjoying convenience.  It’s still about location, but it has to be affordable location.  Shhh.  Don’t spread that to  the speculators.

RIP, McMansions

It was inevitable.  Those large, showy, super-sized palaces are beginning to languish in  their average neighborhoods like so many  beached whales.  Dubbed McMansions, they were cookie cutted out with four of more bedrooms, large baths, three car garages just in time for baby boomers who needed their own space from teenaged offspring.

That was then.  Now it’s empty nest time for the boomers.  Making the transition from 2.5 kids to no kids isn’t what it used to be.  Younger replacement couples are having fewer children.  That means  less interest in hotel-like housing.  Heating and cooling costs are rising.  Electricity is up 12% and natural gas rose 43%  nationally over the last few years.  McMansions are not yet a hard sell, but they’re  getting there.  

The news is both good and bad, literally depending upon which side of the fence you’re on.  Just last week, a section of a giant  newly built McMansion was ordered razed in  Nashville.  The owners had placed it it too close to the lot line.  This time the neighbors won.  Here’s a trend to watch.  Stay tuned.