San Diego, CA (PRWEB) July 18, 2009
RealEstateInvestor.com (REI), http://www.realestateinvestor.com, is encouraging its online community of more than 30,000 investor clients to begin looking at undervalued property. REI experts know that one of the most successful tools to real estate investing is to buy undervalued property that produces positive cash flow.
REI is referring its clients to a new study from the international consulting group, IHS Global Insight that has recently identified dozens of metropolitan markets with undervalued property.
According to the report, as of the first quarter of 2009, some of the most undervalued markets were previously known as "booming" cities where real estate prices once soared then ultimately crashed.
These cities include:
Vero Beach, Florida. Prices are now 42.5% below prior levels. A recent report from Realty Times cited the story of a New York investor who bought a package of new homes and developed lots in Vero Beach for just under $9 million. At the peak of Vero Beach's boom, that same package was appraised at $100 million.
Las Vegas. Today's $140,000 median house price has fallen drastically from the $290,000 median price that was reported during the first quarter of 2006. The IHS report has found that today, Las Vegas's overall market undervaluation is at 40.9%.
Fort Myers, Florida. Once considered the hottest place in the country for investors buying up condos, Fort Myers/Cape Coral, Florida is now the foreclosure capital of the state. Today, its $119,000 median price is drastically contrasted with the $245,000 median from 2006.
Naples, Florida. Again in Florida, the city of Naples has been rated 33% undervalued according to the IHS report. Currently, its median home price is $200,000, about half of what it was just three years ago--$392,000.
Reno, Nevada. Rated 26% undervalued based on projections, today, the median housing price is $179,000. This is compared with the $324,500 from 2006.
San Francisco. Surprisingly, San Francisco is now finally on "sale." The city by the bay is currently undervalued by 25%, according to IHS Global Insight researchers. Just three years ago, the median house price was $811,000; today it has fallen to $578,000.
REI's CEO, Colin Egbert says "We feel like this is great news to share with our investors looking to take advantage of these deals. REI's members in these markets are beginning to look at investment opportunities again."
# # #