Start Building Your Equity Now By Buying Into America’s Top 5 Real Estate Cities

Todays top stocks to buyNo two cities are alike, which makes these five the cream of the crop for rising home prices in the US…

If there was ever a year of the housing rebound, 2013 may have been it.

According to the S&P/Case-Shiller Home Price Index, home prices in the US rose for nine consecutive months before a negligible dip of 1/10th of 1% in November

Other than the tiny blemish (which isn’t unusual during a typically slower winter season), the housing market is the strongest it’s been in nine years.

“Despite the slight decline, the 10-City and 20-City Composites showed their best November performance since 2005,” says David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices.

Year-over-year, non-seasonally adjusted home prices are actually up 13.8% for the 10-City Composite and 13.7% for the benchmark 20-City Composite.

Single-family homes have recorded year-over-year price gains now for 18 consecutive months.

The average home price in America has returned to mid-2004 levels, but is still about 20% off their mid-2006 peak.

Amid a backdrop of rising mortgage rates, some cities still experienced their highest growth in years.

Dallas’ 9.9% annual jump in November was the city’s highest since 2000. And Chicago’s 11% rise was the quickest in a quarter century.

Though mortgage rates are going up, a shrinking inventory of homes for sale has been a major boost to both sale price and homeowner equity.

So what can investors expect for 2014?

Blitzer predicts growth will continue, albeit at a more tepid pace.

He states that “…while housing will make further contributions to the economy in 2014, the pace of price gains is likely to slow during the year.”

This is excellent news for those who were worried that they may be priced out of the market after such a frenzied year.

Unlike stocks, which can rise and fall very swiftly, real estate has always attracted people looking for stable, long-term gains.  Furthermore, the business is relatively simple to understand and it allows investors time to do their due diligence and identify markets they feel will provide the best returns.

That’s why the wealthy see real estate as a top investment vehicle of 2014.

In a poll of US millionaires conducted by Morgan Stanley last week, 77% of investors with at least $1 million in assets saw residential and commercial properties as the number one alternative-investment pick of the year.

A third of the millionaires say they plan to make a property purchase this year, while a quarter of them expect to invest in real estate investment trusts (REITs).

With equities at record highs and fixed-income yields at historic lows, real estate has become an attractive option.

To help get the ball rolling, here are the top five cities with the fastest growing home prices, as determined by the S&P/Case-Shiller Home Price Index between January and November, 2013.

Median sale prices for each city are gathered from the National Association of Realtors.

S&P/Case-Shiller 20-City Index Level: 165.80

S&P/Case-Shiller 10-City Index Level:180.15

1) Las Vegas
Index Level for November 2013: 128.0
Index Level for 2013: 104.04
Growth Rate for 2013: 25.0%
2012 Median Sale Price: $134,100
Q3 2013 Median Sale Price: $181,900

2) San Francisco
Index Level for November 2013: 180.19
Index Level for 2013: 147.45
Growth Rate for 2013: 22.4%
2012 Median Sale Price: $543,800
Q3 2013 Median Sale Price: $705,000

3) Los Angeles
Index Level for November 2013: 128.0
Index Level for 2013: 180.23
Growth Rate for 2013: 20.3%
2012 Median Sale Price: $327,500
Q3 2013 Median Sale Price: $448,900

4) Atlanta
Index Level for November 2013: 113.37
Index Level for 2013: 96.98
Growth Rate for 2013: 18.2%
2012 Median Sale Price: $101,400
Q3 2013 Median Sale Price: $152,300

5) San Diego
Index Level for November 2013: 194.15
Index Level for 2013: 163.28
Growth Rate for 2013: 18.2%
2012 Median Sale Price: $385,500
Q3 2013 Median Sale Price: $485,000

As an added tidbit, the two lowest ranked cities in the 20-City composite, Cleveland and New York, still posted a respectable 6% year-over-year return each in November.

So while 2014 isn’t expected to be red-hot for real estate, I believe investors will still encounter some outstanding moneymaking opportunities in the near future.

Yours in profits,
Todays top stocks to buy
John Holt
for Top Stock Millionaire
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