Falling home prices can present an opportunity for real estate investors to score a deal. Although home prices aren’t in free fall everywhere, the following markets have seen falling prices, which could mean more opportunities for real estate investors.
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Atlanta
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Typical home values: $386,771
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One-year value change: -1.9%
The housing market in Atlanta has slowed to a crawl, with homes sitting on the market for around 51 days before going under contract. Although Atlanta has seen falling housing prices, it’s still a popular Southern city with room for growth in the future.
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Austin, Texas
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Typical home values: $514,193
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One-year value change: -3.8%
Although typical home prices are still above $500,000, Austin residents have seen housing prices take a significant tumble. Not only are house values falling, but sellers typically wait 76 days before going under contract.
In this buyer’s market, real estate investors could find motivated sellers willing to work out an attractive deal.
Denver
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Typical home values: $545,849
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One-year value change: -1.3%
Denver has been a hotspot for people looking to move to a beautiful city surrounded by natural beauty. Although the city saw major gains in recent years, home prices have started to fall. Plus, it takes sellers around 42 days to go under contract, which may put some in a position to negotiate with buyers looking for a deal.
San Antonio
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Typical home values: $251,098
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One-year value change: -2.4%
Famous for the battle of the Alamo, San Antonio has been a popular place to live for decades. Although home prices remain relatively affordable, home values have fallen by over 2% in the last year. Since it takes around 53 days for homes to go under contract, investors might find a motivated seller willing to offer a lower price.
Tips To Find a Worthwhile Investment Property
When it comes to finding the right investment property, running the numbers is a key element. But to find a place that meets your financial goals, the following tips can help:
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Expand your search radius. Although tempting to invest only near where you live, that might not be the right market for a rental property. Don’t be afraid to consider houses outside of your initial search area.
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Find off-market deals. The best deals typically don’t stay on the market for long or don’t even make it to the listing stage. If possible, seek out off-market deals to increase your chances of finding a home run. One way is to get in touch with wholesalers in your area. Another is to call property owners to see if they’ll sell.
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Work with a real estate agent who knows their stuff. A great real estate agent can streamline the buying process. Don’t underestimate the power of a great agent. It might take time to find the right person, but don’t give up on the search.
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Network with other investors. Not only can other investors point you in the right direction, but sometimes they are looking to sell. It never hurts to attend local real estate networking events.
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Negotiate creatively. When it comes to buying a property, it never hurts to ask for the moon. Go beyond asking for a lower purchase price, and ask for the seller to cover projects you’ll have to tackle anyway.
In the lead-up to purchasing an investment property, getting educated about your options is crucial. Take advantage of free resources to beef up your knowledge before becoming a landlord.
Takeaway
Searching for an investment property in the right market can make it easier to find an attractive deal. In hot markets with rising prices, finding an investment property can feel like finding a needle in a haystack. But when the market cools and prices plummet, you’ll likely find more investment opportunities present themselves. As you seek out the right property, take your time, run the numbers and never be afraid to negotiate.
Editor’s note: Housing market data was sourced from Zillow and is accurate as of Jan. 30, 2025.
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This article originally appeared on GOBankingRates.com: 4 Places With Plummeting Home Prices That Are Perfect for an Investment Property
