Know When To Make a Real Estate Investment
Do you ever notice how all the so called "experts" come out to tell everyone how to fix the economy when it's having issues? We see it all the time and no what time of real estate investment you're thinking about making, they supposedly have the right answer. Listen, the economy will do what it will do, and if you want to profit from this arena then you have to find the right cash homes buyers.
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.
Let's examine this line of thought. Better yet, we will look at the facts and see whether or not these guys are really in touch with reality. Most of us have heard of the principle of "supply and demand." It's really very simple. Price is predicated upon the demand for a product balanced by its availability. Back in spring 2007 potential buyers began to hold back after observing a winter where over-inflated home prices were no longer inflating. When the seasonal market opened in the 2nd quarter buyers were now reluctant to pay prices without regard for the usual cautionary considerations like before. It was a bit of a sobering time for many. Since then deflation has been the trend.
When looking at the purchase rates, you will find that most families decide to move during school summer break. This allows for a much easier transition, and when the market knows this, prices tend to rise.
After we saw a greater demand, the banks decided to hold the flow of foreclosures that surfaced. You would think that since these were held back the market values would fall. The truth is it did happen, and lowering the supply allowed the demand for each real estate investment to rise for cash homes buyers.
What, then, does this spell for the near future? Well, peak season came to an end and September brought a new flood of foreclosures hitting the streets. The tables had turned once again and now supply grew while demand diminished. The massive number of foreclosure files yet to be processed is an indication of a steady supply from desperate sellers. Thus the trend will likely continue in a downward direction at least till next spring.
Keep in mind this isn't just the low tier homes either. You will find a plethora of "A paper" loans in the big pile, mostly due to financially sound reasons. These are individuals who have large household incomes, but couldn't make their payments for one reason or another. However, there are several who could make their payments, but decided to get out from under the huge debt in the current market. Two years from now they can purchase the same home for much less, and be in a better financial position. In the end it just makes 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. - 23222
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.
Let's examine this line of thought. Better yet, we will look at the facts and see whether or not these guys are really in touch with reality. Most of us have heard of the principle of "supply and demand." It's really very simple. Price is predicated upon the demand for a product balanced by its availability. Back in spring 2007 potential buyers began to hold back after observing a winter where over-inflated home prices were no longer inflating. When the seasonal market opened in the 2nd quarter buyers were now reluctant to pay prices without regard for the usual cautionary considerations like before. It was a bit of a sobering time for many. Since then deflation has been the trend.
When looking at the purchase rates, you will find that most families decide to move during school summer break. This allows for a much easier transition, and when the market knows this, prices tend to rise.
After we saw a greater demand, the banks decided to hold the flow of foreclosures that surfaced. You would think that since these were held back the market values would fall. The truth is it did happen, and lowering the supply allowed the demand for each real estate investment to rise for cash homes buyers.
What, then, does this spell for the near future? Well, peak season came to an end and September brought a new flood of foreclosures hitting the streets. The tables had turned once again and now supply grew while demand diminished. The massive number of foreclosure files yet to be processed is an indication of a steady supply from desperate sellers. Thus the trend will likely continue in a downward direction at least till next spring.
Keep in mind this isn't just the low tier homes either. You will find a plethora of "A paper" loans in the big pile, mostly due to financially sound reasons. These are individuals who have large household incomes, but couldn't make their payments for one reason or another. However, there are several who could make their payments, but decided to get out from under the huge debt in the current market. Two years from now they can purchase the same home for much less, and be in a better financial position. In the end it just makes 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. - 23222
About the Author:
Brian Lamas an active Invesdoor Territory Manager. We Buy Houses Cash fast . Sell Your Home fast to an Investor. Cash Offers,private.
posted by X - Men @ 7:57 AM
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