Real estate investors are getting spoiled with all the great deals currently available in the market.
Foreclosures and short sales have been driving inventory up, while home buyer demand has been down.
How much longer can it last?
A recent report from the National Association of Realtors (NAR) showed home prices falling from a year earlier by the biggest margin in over 40 years.
The same report also showed that the Pending Home Sales Index, based on contracts signed in December, surged 6.3 percent to 87.7 in December, the first increase since August.
So, home selling prices are down and sales are up. Is that any surprise?
Real estate investors aren’t the only ones looking for deals in this market!
One might be tempted to believe that best buying opportunity of real estate in our lifetime is over.
FNMA & FHLMC did this to give homeowners more time to work out loan modifications and stay in their homes and to also score political points by not evicting people over the Holidays.
The result though, is a backlog in foreclosures and a coming final surge in REO’s hitting the market. The increase in demand for housing will be overrun by this surge in supply and housing values will drop further and hit bottom.
What’s all this data mean? The housing market hasn’t hit bottom yet, but appears to be getting close. Rising home sales will soon put a floor under housing values as consumers grab deals on homes. The coming surge in REO’s this summer will probably be the best buying opportunity of our lifetime. Once the market hits bottom, it’ll stay there until there’s an increase in jobs.
Investors need to get out there and buy, buy, buy before the rebound! These are times when millionaires and fortunes are made, but remember – it’s almost impossible to time the market. Soon after the market hits bottom, the excess inventory will be absorbed and prices will go up. Then the question will be, when do investors sell their inventory and cash in?
Drew Sygit
Drew Sygit is President of The Lending Edge and holds mortgage industry designations CMPS, CMC, CRMS, CMLO, CALO, has an MBA and is an approved industry instructor. He’s spoken for HUD, has written numerous articles and is a mortgage industry advocate for loan originator licensing and consumer education. He can be reached at 248-356-3739, The Lending Edge or read his blog at Drew’s Mortgage News.
[tags]real estate,market,bottom,inventory,nar,reo,fnma,investors[/tags]
The Real Estate Race is On
Real estate investors are getting spoiled with all the great deals currently available in the market.
Foreclosures and short sales have been driving inventory up, while home buyer demand has been down.
How much longer can it last?
A recent report from the National Association of Realtors (NAR) showed home prices falling from a year earlier by the biggest margin in over 40 years.
The same report also showed that the Pending Home Sales Index, based on contracts signed in December, surged 6.3 percent to 87.7 in December, the first increase since August.
So, home selling prices are down and sales are up. Is that any surprise?
Real estate investors aren’t the only ones looking for deals in this market!
One might be tempted to believe that best buying opportunity of real estate in our lifetime is over.
Not so fast. Did anyone follow the news back in November that FNMA and FHLMC were suspending foreclosures? How about their announcement they were extending the suspension to the end of January, 2009?
FNMA & FHLMC did this to give homeowners more time to work out loan modifications and stay in their homes and to also score political points by not evicting people over the Holidays.
The result though, is a backlog in foreclosures and a coming final surge in REO’s hitting the market. The increase in demand for housing will be overrun by this surge in supply and housing values will drop further and hit bottom.
Of further note, Wayne County Sheriff Warren Evans announced Monday, February 2nd that he would indefinitely halt foreclosures. This too, will contribute to the backlog.
What’s all this data mean? The housing market hasn’t hit bottom yet, but appears to be getting close. Rising home sales will soon put a floor under housing values as consumers grab deals on homes. The coming surge in REO’s this summer will probably be the best buying opportunity of our lifetime. Once the market hits bottom, it’ll stay there until there’s an increase in jobs.
Investors need to get out there and buy, buy, buy before the rebound! These are times when millionaires and fortunes are made, but remember – it’s almost impossible to time the market. Soon after the market hits bottom, the excess inventory will be absorbed and prices will go up. Then the question will be, when do investors sell their inventory and cash in?
Drew Sygit
Drew Sygit is President of The Lending Edge and holds mortgage industry designations CMPS, CMC, CRMS, CMLO, CALO, has an MBA and is an approved industry instructor. He’s spoken for HUD, has written numerous articles and is a mortgage industry advocate for loan originator licensing and consumer education. He can be reached at 248-356-3739, The Lending Edge or read his blog at Drew’s Mortgage News.
[tags]real estate,market,bottom,inventory,nar,reo,fnma,investors[/tags]
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