| Interesting Real Estate Investment Opportunities |
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| Written by Brian Lamas |
| Sunday, 08 November 2009 04:14 |
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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 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. Around the first quarter of the year the country saw a steep decline in the retail values of the housing market. In fact, it happened to be 60%, and even though the 2nd and 3rd quarters had minor gains, it was only a slowdown of the overall process. Today, realtors are predicting that there will be a slow steady rise in home values. According to them, it's smooth sailing from here. 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. 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. 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. Do you know what this means for the future? It means when school was in session again, September brought more foreclosures. Just a month earlier things were looking great, but when the supply grew, the prices for these homes fell dramatically. So now there are all kinds of foreclosures out there for cash homes buyers to cash in on. Plus, there are still several foreclosures that are still waiting to be processed. 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. In the end, if you know when to make a real estate investment, and when to be cash homes buyers, you can make all kinds of money in this industry. Sure you can listen to the so called "experts," but you may lose your hat in the process. Just keep the "supply and demand" scenario in mind and you'll be able to be successful. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Lance Wilson an active Invesdoor Territory Managers and real estate investment expert . Need to Sell Your Home , we Buy Houses for cash fast . We pay for homes cash |
| Last Updated on Friday, 13 November 2009 20:11 |