Interesting Real Estate Investment Opportunities
When you think about the economy and it's constant up and down status, it's funny how the "experts" seem to come out of the woodwork to talk about a real estate investment. While we're all gasping for air and looking for a way out, they seemingly have the answer. Regardless, the economy will continue to do what it will no matter what they predict and cash homes buyers will be hanging on every word.
When you look back at the first quarter of the year, there was a steep decline in retail values of the housing market that reached 60%. The next two quarters saw slight gains, but the whole process was slowed. Now realtors believe there will be a slow but steady rise in home values. Oddly enough they believe its smooth sailing from here on out.
So do you think these guys and gals are really in touch with reality? The first thing you have to think about is the supply and demand factor. It's really easy to understand and it all starts with the price being predicated on availability. Around the spring of 2007, potential buyers had begun to hold back. The winter brought about over-flated prices, but tended to level off. Once the 2nd quarter came about buyers weren't worried about all the usual cautionary considerations. Needless to say it was a sobering time for many, and now deflation seems to be the trend if you're looking for a real estate investment.
The usual time to move for most families is during summer break. The kids are out of school, and the transition becomes much easier. So when people purchase homes during this time, it's no surprise that the prices rise, even if it's only minimal.
When there was a greater demand, banks held up the flow of foreclosures that hit the market. Since a sizeable percentage of the foreclosures were held back, you would think the values across the board would fall. This is exactly what happened, and it was something experienced by the entire market. What it came down to is that the supply was lower, and the demand was higher for cash homes buyers.
So what exactly does this mean for the future? Well, once school rolled around, September brought about several foreclosures. Even though things looked great just one month prior, the supply started growing and the demand was falling short. Right now you will find a healthy supply of foreclosures that haven't even been processed. So you can most likely see much of the same until next spring.
Furthermore, the profiles of families in default have evolved from the subprime arena to "A paper" loans to families who could, in fact, stay in their homes but will opt out for financially sound reasons. These are folks who are a bit more sophisticated and may have larger household incomes than the prior group. Many could still make their payments but choose to get out from under the huge debt that the market has dealt them. Many families see a quarter million dollar sink hole (or more) and will choose to short sell the home, wait 2 years and buy the same home for much, much less. Notwithstanding the moral dilemma, many find that it just makes good economic sense.
The foregoing scenario presents some interesting real estate investment opportunities for the cash home buyer. That's why we buy homes all over the United States during these market conditions. While the market trend may not be as favorable for the retail buyer, cash homes buyers in most U.S. markets are making insane profits by skillfully applying the simple principle of "supply and demand. - 23167
When you look back at the first quarter of the year, there was a steep decline in retail values of the housing market that reached 60%. The next two quarters saw slight gains, but the whole process was slowed. Now realtors believe there will be a slow but steady rise in home values. Oddly enough they believe its smooth sailing from here on out.
So do you think these guys and gals are really in touch with reality? The first thing you have to think about is the supply and demand factor. It's really easy to understand and it all starts with the price being predicated on availability. Around the spring of 2007, potential buyers had begun to hold back. The winter brought about over-flated prices, but tended to level off. Once the 2nd quarter came about buyers weren't worried about all the usual cautionary considerations. Needless to say it was a sobering time for many, and now deflation seems to be the trend if you're looking for a real estate investment.
The usual time to move for most families is during summer break. The kids are out of school, and the transition becomes much easier. So when people purchase homes during this time, it's no surprise that the prices rise, even if it's only minimal.
When there was a greater demand, banks held up the flow of foreclosures that hit the market. Since a sizeable percentage of the foreclosures were held back, you would think the values across the board would fall. This is exactly what happened, and it was something experienced by the entire market. What it came down to is that the supply was lower, and the demand was higher for cash homes buyers.
So what exactly does this mean for the future? Well, once school rolled around, September brought about several foreclosures. Even though things looked great just one month prior, the supply started growing and the demand was falling short. Right now you will find a healthy supply of foreclosures that haven't even been processed. So you can most likely see much of the same until next spring.
Furthermore, the profiles of families in default have evolved from the subprime arena to "A paper" loans to families who could, in fact, stay in their homes but will opt out for financially sound reasons. These are folks who are a bit more sophisticated and may have larger household incomes than the prior group. Many could still make their payments but choose to get out from under the huge debt that the market has dealt them. Many families see a quarter million dollar sink hole (or more) and will choose to short sell the home, wait 2 years and buy the same home for much, much less. Notwithstanding the moral dilemma, many find that it just makes good economic sense.
The foregoing scenario presents some interesting real estate investment opportunities for the cash home buyer. That's why we buy homes all over the United States during these market conditions. While the market trend may not be as favorable for the retail buyer, cash homes buyers in most U.S. markets are making insane profits by skillfully applying the simple principle of "supply and demand. - 23167
About the Author:
Judson Barrera an active Invesdoor Territory Manager and real estate investment expert. Sell your home fast Get an Immediate Response from an Investor. No Waiting, we Buy Houses NationWide.
posted by X - Men @ 6:22 AM
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