Real Estate Investment - Cash homes buyers
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.
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, are they right? Well, when you look at the supply and demand factor it's hard to say yes. See, back in 2007 the spring time saw buyers start to hold back. This was due to the winter months being full of inflated prices, and even though they leveled off, it wasn't pretty. So when cash homes buyers were looking for a real estate investment, they weren't worried about the normal cautionary considerations. It ended up being a sobering time for many, but fast forward and deflation seems to be 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.
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.
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.
Another thing to understand is that many of these foreclosures are considered "A paper" loans. Those who have larger incomes realize what is happening, and decide to get rid of their homes and relieving a monumental piece of debt. However, two years from now they will be able to purchase the same home for much less and end up making out. You can see that this makes complete 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. - 23305
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, are they right? Well, when you look at the supply and demand factor it's hard to say yes. See, back in 2007 the spring time saw buyers start to hold back. This was due to the winter months being full of inflated prices, and even though they leveled off, it wasn't pretty. So when cash homes buyers were looking for a real estate investment, they weren't worried about the normal cautionary considerations. It ended up being a sobering time for many, but fast forward and deflation seems to be 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.
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.
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.
Another thing to understand is that many of these foreclosures are considered "A paper" loans. Those who have larger incomes realize what is happening, and decide to get rid of their homes and relieving a monumental piece of debt. However, two years from now they will be able to purchase the same home for much less and end up making out. You can see that this makes complete 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. - 23305
About the Author:
Judson Barrera an active Invesdoor Territory Manager and real estate investment expert. Sell your House Fast Get an Immediate Response from an Investor. No Waiting, we Buy Houses NationWide.
posted by Mr. Forex at
7:59 AM
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