Today’s real estate market is anything but strong. But, if you know where to look, you can still find enclaves and small communities with strong foundations and even stronger local real estate markets, full of valuable homes that are holding up pretty well in today’s economy.
Take Hillsborough, California for example. The town only has a population of 10,825 as of 2010, and sits roughly 17 miles south of San Francisco. Yet, the median home price is a staggering $2,277,500. Part of this is due to the fact that the city enforces a strict building code that requires every home to have at least 2,500 sq. ft. – with no apartments or condos included.
Next on the list is Los Altos Hills, California , a small community near Silicon Valley that boasts just 7,922 people but has a median home price of $2,273,250. Some might notice a trend in that both towns are in California. In fact, 18 of the top 25 cities with the highest median home prices are in California , a testament to the incredible wealth that is still in that state.
You can also look at pricing trends to get a feel for the best places to invest when it comes to real estate, at least over the past year. Louisville, Colorado is a prime example. The city of 18,937 people (as of 2000) was named the best place to live in the United States by CNN for 2011. It features a median household income of $69,945 and an incredibly low poverty rate of 3.0%. But one statistic that may astound real estate investors is this: From August, 2010 to July, 2011, the average listing price for properties in Louisville rose from $226,296 to $384,981 – a price jump of 70%.
Milton, Massachusetts was next, with a price increase of 42% over the past year.
What do all of these places have in common? All feature above-average household incomes, above-average population growth (except for the ultra-exclusive communities like Hillsborough and Los Altos Hills), above-average median home prices, low unemployment, low poverty, older populations, more educated citizens, and favorable job growth.
Those are where real estate values will remain stable or continue to rise, so it makes sense to begin your search for value investments in these types of communities. There is a lot to be said for finding value in stability rather than going to the extremes to make your investment, and stability and positive growth is something these types of cities all have in common.