Summary of Top 10 States to buy real estate during the Recession
The video discusses the top ten states in the U.S. for real estate investment during the anticipated recession in 2025, highlighting that while home prices may decline in many areas, certain states are expected to see continued appreciation. The main financial strategies and market analyses presented include:
Main Financial Strategies and Market Analyses:
- Recession Impact: The video emphasizes that not all states will experience falling home prices during the recession; instead, certain markets are expected to outperform due to inventory shortages.
- Inventory Shortages: A significant factor driving price increases in the highlighted states is the lack of available homes for sale, which keeps demand high relative to supply.
- Migration Trends: The video notes a trend of "Boomerang migration," where individuals who moved to southern states during the pandemic are returning to their original homes in the Northeast and Midwest, further increasing demand in these areas.
- Price Forecasting Methodology: The video introduces a Price Forecast score, which assesses the likelihood of home price increases or decreases based on local market fundamentals such as recent appreciation, days on market, inventory levels, and price cuts.
Step-by-Step Guide/Methodology:
- Use of Price Forecast Score:
- The score ranges from 0 to 100, indicating the likelihood of price changes.
- It is based on local market fundamentals.
- Users can access this score for their area by visiting the Reventure App and entering their zip code.
Top 10 States for Real Estate Investment:
- Connecticut: Forecasted to increase by 7-8% in 2025 due to a significant inventory shortage.
- New Jersey: Values up 5.9% with a forecast score of 61/100, driven by continued demand and low inventory.
- Illinois: Home prices up 5.4% with a significant inventory deficit.
- Rhode Island: Up 7.1% over the last year, with a strong forecast score.
- New Hampshire: Leading in appreciation with a 68% increase over five years.
- Wisconsin: Prices up 5-12%, with a notable increase in migration.
- Vermont: Home values increased by 50% since the pandemic, with many absentee owners.
- West Virginia: The most affordable market with continued sales growth.
- New York: Home prices up 6.8% due to low inventory.
- Massachusetts: Values up 5% with expectations for continued growth.
Presenters/Sources:
The video references data from Reventure App, which is utilized for market analysis and forecasting.
Notable Quotes
— 07:28 — « This shift is a reversion, a reversal of what occurred during the pandemic where the states that did the best during the pandemic like Texas and Florida in terms of home price appreciation, they are now doing the worst. »
— 08:10 — « These Legacy cities and states, they don't build enough homes to accommodate the home buyers, so the prices are still going up. »
— 09:48 — « This reduction in inventory is why Revenge app gives New Jersey a 61 out of 100 on The Price Forecast for 2025, that's one of the highest scores in America. »
Category
Business and Finance