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If you’ve ruled out winning the lottery as your chance to become a millionaire, you must have considered real estate investing a viable opportunity.

And if you haven’t, this article will plant the seed.

Real estate data firm PropertyShark took a closer look at how many property owners have made a good profit off of selling their homes since the turn of the century. More specifically, they looked at homes bought before 2001 for less than $1 million, later to be sold by their owner for $1+ million.

They then grouped the data by city, to give us a clear picture of the thriving real estate markets where investing in property can take us one step closer to becoming a millionaire. Here’s how they map out:

real-estate-millionaires-by-city
Image credit: PropertyShark.com

The city to land first place is — unsurprisingly — San Francisco, which minted 381 million real estate millionaires as the market skyrocketed in the past two decades. That puts it ahead of Manhattan, which, despite being double the size of San Francisco, only saw 335 people become millionaires off of selling their properties.

A more unexpected finding was that the Los Angeles market lost the third spot in favor of Brooklyn; the New York borough came in on #3, with 281 people making a good profit off of selling their homes for over $1 million.

Trailing closely behind, “the city of Los Angeles, with a population of more than 3.9 million, made 280 people millionaires since the turn of the century,” Robert Demeter reports for PropertyShark, adding that “L.A. isn’t as expensive as some of the neighboring cities in the county, but being spread out with a large number of residents, it’s no surprise it made it so high on our list. Affluent neighborhoods such as Bel-Air, Venice Beach and Brentwood most certainly paved the way for homeowners to become millionaires after selling their properties.”

Other notable markets where people achieved millionaire status by selling their homes are Potomac, MD (182 millionaires), Bethesda, MD (175 millionaires), San Jose, CA (119 millionaires), Queens, NY (93 millionaires), Scottsdale, AZ (86 millionaires), and Plainfield, IL (78 millionaires).

Out of the top 25 “millionaire cities”, 7 are located in the Silicon Valley area, where the median home price regularly goes over the $1 million mark.

It’s worth noting that the study only looked at the profits made off of selling homes in these markets with a sale price over $1 million.

It doesn’t take into account other financial holdings, investments or net worth of these individuals, who may have already been millionaires before selling their homes.

However, it’s a great indicator of markets that are most likely to mint out millionaires after buying local real estate.

Source: fancypantshomes.com

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A stone home built in 1668 in Chestertown, MD, is the oldest home on the market this week on Realtor.com®.

The exterior walls are said to have been constructed of stone “not native to the area” and which may have been transported from England in the original owner’s ships, the listing notes.

Other historic homes to hit the market this week include a modernized antique in New York, a stone manor house in New Jersey, and a stone farmhouse in Pennsylvania.

Scroll down for a full look at this week’s 10 oldest homes.

Price: $327,900
Year built: 1668
Rock of Ages: The two-bedroom home “needs renovation” the listing states. The house, perhaps the oldest in the state, has not been occupied since 1996.

The 1,186-square-foot abode features a cozy living room with wood-paneled walls and a fireplace. One cute bedroom has an arched ceiling. The kitchen and bathrooms need work, and an attached shed has an outhouse.

Prospective buyers and agents are advised to enter the home at their own risk.

Chestertown, MD

(Realtor.com)

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Price: $398,000
Year built: 1690
5 acres and stone walls: This charming three-bedroom home has been well preserved. Measuring 1,480 square feet, it features restored hardwood floors and hand-hewn beams.

The living room has a large bay window, a brick fireplace with a beehive oven, and a wood stove. The kitchen and dining area also comes with a wood stove. The main level has one bedroom, and the upstairs has two additional bedrooms and a small room that could be used as a nursery or home office.

Also found on the property are a smaller barn with a paddock and storage room as well as a larger barn designed to accommodate animals.

Porter, ME

(Realtor.com)

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Price: $489,900
Year built: 1700
Center of town: This five-bedroom home combines history with modern flourishes.

The adorable kitchen has a center island with a two-seat breakfast bar. French doors from the kitchen open to a flagstone patio with an old mill/grindstone, along with pathways through gardens. The dining room features restored hardwood flooring, and the formal living room has the original, wide-board flooring and raised paneling. A newer addition off the back would be ideal for a home office or in-law suite.

Significant roof repairs are currently in progress and will be completed before closing. The 1.2-acre lot also features an oversized post-and-beam garage/barn.

Suffield, CT

(Realtor.com)

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Price: $795,000
Year built: 1712
The Benner House: This three-bedroom antique has been stylishly modernized.

The 2,477 square feet of interior space boasts two ground-floor fireplaces, a main-floor bedroom, an updated kitchen, and an open floor plan with wide-plank flooring and exposed-beam ceilings. The two upstairs bedrooms offer vaulted wood ceilings.

Enjoy views of the 1.6-acre lot from the three-season room or oversized deck. The appealing property is already pending sale after a week on the market.

Red Hook, NY

(Realtor.com)

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Price: $940,000
Year built: 1725
The Bodo Otto House: This six-bedroom, stone manor house is listed on the National Register of Historic Places.

Now restored, the 4,068 square feet of interior space features original details, including seven fireplaces (one has the original cooking crane), random-plank boards, a brick hearth, and exposed stone walls. The modernized kitchen features floor-to-ceiling cabinetry, and the four-season sunroom comes with a private entrance. The primary suite is on the second floor and has a fireplace. Three more bedrooms can be found on the third floor.

The 1.6-acre lot comes with four outbuildings, including a stone smokehouse.

Mickleton, NJ

(Realtor.com)

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Price: $695,000
Year built: 1730
Stone farmhouse: The 2,316-square-foot main home has three bedrooms and a full bathroom. It features many period details and will need some TLC. Features include hardwood floors, wood-beamed ceilings, and exposed brick walls.

The 19-acre parcel also comes with a two-story summer house, a five-bay garage, and “a small stream that rumor has it they mined for gold,” according to the listing.

The property consists of two separate deeds being sold as one.

Dillsburg, PA

(Realtor.com)

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Price: $625,000
Year built: 1730
The Tuttle Estate: This three-bedroom home was built by one of the original planters who settled in the area, according to the listing.

The 2,906-square-foot space has been fully restored while still boasting many original details. They include wide oak and poplar floorboards restored by hand, wood-paneled walls, and custom built-ins. The dining room has a fireplace with a beehive oven. Two bedrooms can be found on the second floor along with a smaller office that could be used as a bedroom. The third floor has an additional room that could be used as a studio or a bedroom.

The 8-acre lot comes with a three-car garage with a workshop and what is said to be one of the oldest barns in the country.

Wallingford, CT

(Realtor.com)

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Price: $1,289,000
Year built: 1736
Grand Colonial: This spacious, five-bedroom home features original hardwood floors, handcarved woodwork, and seven fireplaces.

Sitting on 1.7 acres next to the Sunningdale Country Club, the 4,345-square-foot residence also boasts custom millwork, diamond windows, built-in bookcases, and preserved hardwood floors. There are window seats, wood-paneled walls, and arched ceilings with exposed beams.

Scarsdale, NY

(Realtor.com)

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Price: $324,900
Year built: 1740
Antique Cape: This four-bedroom home features wide-plank wood floors, wood-beamed ceilings, and a beehive oven.

Located in the historic district, the charming, 1,688-square-foot abode offers an open floor plan. Bedrooms can be found on the first and second floors. The bright kitchen has been modernized over the years and now features an island and updated appliances.

The backyard features an above-ground pool.

Wethersfield, CT

(Realtor.com)

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Price: $439,900
Year built: 1750
Cape and barn: This three-bedroom Cape comes with a massive, two-story barn with a loft.

The 1,755-square-foot home has been renovated over the years but is still in need of some “finishing touches,” the listing states. The colorful kitchen features a wood ceiling, farmhouse sink, and antique oven. The living room has a pellet stove and wide-board pine floor. The primary bedroom is on the first floor, and two additional bedrooms are located upstairs.

Three outbuildings can be found on the 2-acre lot. The property is pending sale.

Gilmanton, NH

(Realtor.com)

Source: realtor.com

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8 min

When Colleen Randall bought her house in 2016 for $174,000, she figured it was the perfect starter home. Then the past few years made the deal even sweeter: She doubled the square footage after redoing her unfinished basement. Now the three-bed, three-bath house in Hagerstown, Md., is worth at least $260,000. Refinancing in 2020 also lowered her mortgage rate from 3.25 to 2.75 percent and knocked off her private mortgage insurance.

And that’s the problem.

Randall, 33, and her husband want to have a second child, but their third bedroom is a sunroom and wouldn’t work for a new baby. They would normally just look to move and sell it. But they can’t imagine giving up their ultralow rate for a new mortgage above 6 percent on a bigger house. The more likely scenario: delay having another kid and stay put.

“My mortgage payment would essentially double if we purchased a house with around the same square footage, with just a better layout,” Randall said. “I just can’t do it. If I could predict the future, we’re probably going to stay where we are. It’s just too comfortable a position.”

Mortgage rates rise above 7 percent as Fed scrambles to slow economy

People like the Randalls are everywhere, and they’re causing unanticipated problems for the housing market. Home values soared in the past few years, as the pandemic reshuffled people’s housing needs, and buyers clamored for the few listings available. To cool that demand — and tame inflation throughout the economy — the Federal Reserve has been hiking interest rates at the fastest pace in decades. Those moves sent mortgage rates surging past 7 percent last fall, and while they’ve pulled back somewhat, the 30-year fixed rate was still around 6.35 percent last week, according to Freddie Mac.

But those increases are also discouraging owners from putting their homes on the market and forfeiting the low rates at which they borrowed money before last year. And that is cutting down on the supply of houses, especially for conventional starter homes that have long helped first-time buyers gain a foothold in the market.

It’s the perfect starter home. But it’s only for rent.

“The world is going back toward normal, but we still have the aftermath of what happened,” said Skylar Olsen, chief economist at Zillow. “That’s moving the housing market to behave this way.”

Striking a balance between supply and demand in the housing market is key to getting inflation under control. But experts say they don’t see the logjam getting better until rates simmer down, which probably won’t happen until next year. Even then, the days of super-low rates are likely over for a generation of home buyers who came of age when it was much easier to get a cheap loan.

The vast majority of homeowners have rates below today’s average. At end of 2022, 62 percent of mortgage holders had a rate below 4 percent, and 82 percent had a rate below 5 percent, according to Redfin data. A whopping 92 percent had a rate below 6 percent.

The number of new listings hitting the market are also far below normal levels, as millions of homeowners decide not to budge. In February, listings were down more than 23 percent from the year before, according to Zillow, and more than 32 percent from pre-pandemic levels.

Five reasons you shouldn’t buy a house right now

The drop is more dramatic in certain areas. Listings in Winston, N.C., were down 65.6 percent in February compared with the year before, according to Zillow, and they dropped 49.6 percent in Milwaukee, 39 percent in Las Vegas, and 36.8 percent in D.C.

The decline in listings is unusual, even compared with before the pandemic. By that measure, listings fell 67.3 percent in Winston, and 45.9 percent in Las Vegas.

In normal times, Knoxville, Tenn., would have around 10,000 active listings at any given moment. But by the time Hancen Sale was shopping for his first home in late 2020 and early 2021, only 1,300 properties were for sale. He still managed to buy a three-bedroom, two-bathroom historic home with a 2.75 percent mortgage rate for $291,000.

Sale works for the Knoxville Area Association of Realtors and has seen how the pandemic turbocharged the college town’s housing market. In 2021, the annual income needed to afford the average house with a 10 percent down payment was $55,677, according to his research. By the end of 2022, it was $88,808. So at age 25, he can’t imagine giving up his situation, and if he ever did outgrow the house, he’d rent it out.

“It’s going to be hard for me, financially, to move elsewhere,” Sale said. “It’s kind of frozen me in place in a lot of ways. And even if I did move, I would probably be holding onto a house like this, because the rate is so low, it would be a good revenue-generating investment for me.”

White House unveils new tenant protections amid soaring rental costs

Meanwhile, scores of people are clamoring to find any homes available, even if that means taking on a high rate.

Emily Engel and Tyler Young have been trying to buy their first home together for six months — ever since Engel’s landlord told her he wanted to sell the property where she lives. The long-distance couple has been scouring for a home in north-central Connecticut for around $325,000. They’ve lost out on six offers.

Last month, they were getting ready to put in their seventh. But while they were on the phone with their real estate agent, they were told someone else had just put in a massive bid. The only way for Engel and Young to get back to the front of the line would be to put down an extra $100,000 — cash.

“There’s an overwhelming sense of hopelessness — that’s the word — that washes over me every time,” Engel said. “This is insane. We’re not going to win. We’re not rich. We don’t have $100,000 extra. I’m almost 40. Am I not mature enough to own a house? You feel like a kid.”

Engel said she doesn’t see any signs demand in New England is cooling. But the housing market is extremely sensitive to changes in interest rates, and there are some indications that the Fed’s moves are working as central bankers intended. The median existing-home price fell 0.9 percent in March from a year earlier, to $375,700, according to the National Association of Realtors. That marked the largest year-over-year price decline since January 2012.

Homes that do make it onto the market are taking longer to sell, which helps boost inventory and tame the buyer frenzy from earlier phases of the pandemic. Fed officials are betting that the slowdown will eventually trickle to the rental market, a crucial step since rent costs have become the main driver of inflation throughout the economy.

“We’re not seeing it yet in housing services,” Fed Chair Jerome H. Powell said in February. “But we expect to see that. We need that to happen. That’s another big part of the economy. It’s got to come. It should come in the second half of this year.”

But prices probably won’t drop markedly until there are simply more homes available. Experts have various estimates for how many more houses the country needs, with figures sometimes ranging from 1.5 million to 5 million. Last year, the White House unveiled its Housing Supply Action Plan, which aims to help close the country’s housing shortfall in five years.

Persistent supply chain issues, labor shortages and the rising costs of construction have few experts hopeful that the plan can come to fruition. But the trend is at least moving in the right direction; the number of listings coming from new construction has been steadily climbing since 2016. At the end of 2019, right before the pandemic, almost 19 percent of listings came from new construction, according to Redfin data. By the beginning of 2023, that figure had grown to more than 33 percent.

Still, there is a long way to go, especially when it comes to luring people with ultralow rates.

Jonathan Levitt, 32, took advantage of remote work and moved from Boston to Boulder, Colo., during the pandemic. In 2021, he bought a three-bedroom house for $865,000. He locked in a 3.05 percent interest rate, and he estimated that if he bought the same house today, the monthly payment would be at least $1,000 higher.

Levitt keeps an eye on Zillow listings, and sees other, less-appealing homes in his neighborhood selling for $200,000 more than he paid. He’s put money into upgrading the house — with solar panels, a sauna and workout equipment. He might rent it out down the line. But he can’t imagine selling, or going back to his old Boston apartment with no outdoor space or parking.

“I’m losing money in that scenario,” Levitt said, “versus gaining.”

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Source: washingtonpost.com

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Like many Aurorans, Nancy Martinez is a product of more than one culture.

And that’s exactly what she has incorporated into her new store in dowtown Aurora, Nide Jardin, 140 S. River St., a home decor and plant boutique that features local vendors from the area where she grew up, and the bright, vibrant colors of the Mexican home of her parents and grandparents.

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“I want a place for the community to feel they have an oasis, especially in the winter – not just in the summer,” she said. “Younger people can see someone who looks like them open a business.”

Martinez was born and raised in Aurora’s Pigeon Hill neighborhood on the East Side, and calls herself an East Aurora High School Tomcat through and through.

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By the same token, she has taken trips back to Mexico where her parents came from, and her grandmother still lives. It was at her grandmother’s house that she saw the bright colors that she has put into Nide Jardin.

Nide Jardin, in downtown Aurora, features bright colors, plants and home decor items.

Nide Jardin, in downtown Aurora, features bright colors, plants and home decor items. (Steve Lord / The Beacon-News)

“I tried to incorporate both cultures,” she said.

The name Nide Jardin hails in part from an old saying in Spanish, “Ni De Aqui, Ni De Alla.” It translates as, “Neither From Here, Nor There.”

Martinez said the saying relates to people in Aurora asking where she’s from, and she answers, Aurora.

“Then they say, ‘but where are you really from?’” she said. “I say, Aurora. When I’m in Mexico, they just look at me as an American. I’m neither from here, nor there, but I’m from everywhere!”

Like many during the pandemic, Martinez was in seclusion and feeling sad. She began to make plans for a business that would include the plants she loves.

“I kind of started thinking, if I feel this much joy, why not others?” she said.

Still, she admitted, she was unsure about opening a store.

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“I never would have imagined I would open my own business, downtown, in my own hometown,” she said.

Her husband, Hector Martinez, owner of Martinez Built, spent months remodeling the suite in the River Street Plaza, and Nide Jardin was born. Martinez opened the business quietly this week, and plans a bigger grand opening sometime in May, around Mothers Day.

The front of the store features plants and home decor items, and in the back part of the suite is an open space Martinez plans to eventually use for workshops and other events. She’s open to ideas for programs for both young people and adults.

“We have a large Latino community,” she said. “This could be a space for other small businesses to come in.”

The store is another in the burgeoning South River Street area in downtown Aurora, across the street from the Aurora Public Library. The area is seeing more boutique-type stores, coffee houses, brew pubs and restaurants, in a mix of historic and new buildings.

People can see more about the store at NideJardin.com

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Source: chicagotribune.com