I've seen a lot of news coverage lately claiming that the recession is over and that we are on the verge of recovery. Home sales are back up in some areas and home prices have even risen in some areas. Surely this appears to be a good thing, right?
At the same time I have to admit that I'm a bit puzzled at how economists can claim that the housing crisis is over. Because at the same time that I'm seeing all of this news claiming that things have turned around I'm also seeing news like this:
"Mortgage Delinquencies break another record" -According to MarketWatch, the percentage of residential mortgages in foreclosure or at least one payment delinquent has hit an all time high of 13.16% in the second quarter of 2009. This is the HIGHEST EVER rate recorded by the Mortgage Bankers Association. (Source MarketWatch, Amy Hoak, 8/20/09)
Either I'm missing something that all of these top economists understand but I don't or we are clearly not done with the housing crisis yet. If the foreclosure rate is higher than it has ever been that means that there are going to be more bank owned homes coming onto the market than we already have.
Is this happening everywhere in the US? No. Some areas are seeing some signs of recovery. But just as clearly some areas are not done going down yet. If you are a real estate investor I would think that you would want to know which. Because if you buy in one place you may be making a safe real estate investment. But if you buy in another you may still see home prices drop in that area.
There is a lot of opportunity out there right now for real estate investors, but you've got to know where you should be buying. You want to be buying at the right time in the right markets so you can actually make money with your real estate investments - not see them drop in value shortly after you buy. This is where real estate timing comes in. You need to know When to Buy and When to Sell. With the proper resources, like the real estate market analysis charts at REMarketStats, you can do just that.
Before you start thinking it's safe to just jump back into the market just because some economists claimed the housing crisis is over I strongly encourage you to find out more about the markets you are interested in. If the foreclosure rate is higher than it has ever been it means there are some markets out there that are not out of deep water yet.
We are in a time right now where there are some fantastic buying opportunities for real estate investors. Prices have dropped massively in some areas allowing rentals to cash flow that haven't been able to for some years now. But you need to know that those prices aren't going to drop a whole lot more. Do your research, find out about real estate timing.
See this post at it's original source at http://remarketstats.com/blog/is-now-the-time-to-buy/
Real estate business is always on a high because people want to buy and sell property all the time! I know of a website which promotes real estate business! People can buy and sell all sorts of property here! This company has a large number of foreclosure homes which can be bought at a discount price of 60-80%. Lots of houses of various designs are available which are ready to be bought! People can also invest money in this business which is highly profitable!
ReplyDeleteThere is always reverse side of the market.I went through the link given in above comment.They seem to be helping their clients to make profit in the down trend also through foreclosures.
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