2Q 2009 Housing Price Index: Appreciation by State

The real estate market never ceases to amaze me... perhaps that is one of the reasons that I love investing so much. The Federal Housing Finance Agency release their second quarter report, which provides a break down of appreciation state-by-state. 

According to the 2Q FHFA Housing Price Index, the top ten states for appreciation are:

1 - Alaska
2 - Oklahoma
3 - North Dakota
4 - South Dakota
5 - Kentucky
6 - Texas
7 - Missouri
8 - North Carolina
9 - Kansas
10 - Wisconsin

While some people may be inclined to rush to these states and start investing, take a step back and breathe first. If there is one thing the hyper market taught us, it is that appreciation alone does not constitute a sound investment. In fact, I have been spreading this very message for the last 20 years. It's not what you have on paper that makes you secure, its what is coming in each and every month that makes a difference - it cash flow.

Affordability is hovering around a 30 year high and single family homes in many areas are at prices where investors readily rent them for consistent profits. The key to cash flow is being able to find a great property, buy it at the right price and acquire financing that allows you to rent the property for than your mortgage payment. If you are not sure about how to accomplish these steps in fine detail, then be sure to order my home study course. It comes with 8 easy-to-read investor guides, along with audio versions for those of you who prefer to listen to books on tape (CD).