Best Time to Buy Real Estate?
Let’s take a look at some of the recent statistics about the housing market to see why now is the best time to buy real estate:
- The latest Standard & Poor’s Case-Shiller index show that prices are at 2002 levels nationally and 1990s levels in some battered regions, meaning that real estate is available at a discounted price. http://www.standardandpoors.com/indices/sp-case-shiller-home-price-indices/en/us/?indexId=spusa-cashpidff–p-us—-
- Mortgage rates fell to 4.55% for the week ending June 2, according to Freddie Mac, and are near 50-year lows. If you can get a mortgage loan, then now is the best time to buy real estate and finance discounted property at low interest rates
- According to Moody’s Analytics, the ratio of home prices to income is now 20.9% lower than the 15-year average through 2010, and 12.5% lower than the 1989-2004 average. http://www.economy.com/home/products/samples/case-shiller-methodology.pdf
- There were about 15 million vacant homes in the U.S. last year, according to John Burns Real Estate ConsultingInc.—some 3.1 million more than normal. http://finance.yahoo.com/news/Why-Its-Time-To-wallstreet-3012977435.html
Now is the best time to buy real estate FACTS: there is a huge supply of distressed homes pushing down the price of houses, causing houses to be more affordable now than any time since the 1980′s, and, if you can qualify for a loan, you can pick up mortgages at ridiculously low interest rates. If you know how to combine distressed sellers with motivated buyers, then you will find this the best time to buy real estate.
Time to Buy Real Estate | More supply equals lower prices
The glut of inventory on the market has caused the price of houses to plummet. In the southwest region of the U.S., many houses have dropped to a third of their value from 2006. Houses are not expected to start appreciating in value until around 2014 at the earliest. While the median prices of houses will continue to decline over the next couple of years, the rate of decline will be a couple of percentage points and should not prevent you from picking up houses. You won’t see markets dropping 50% again. That means you have a window of 3 years to pick up houses at discounted rates, making this the time to buy real estate.
Time to Buy Real Estate | More demand due to inability to get a loan
While now is the best time to buy real estate, most Americans are unable to. Right now, I estimate about 85 million Americans are unable to qualify for traditional financing and benefit from the low mortgage rates. This fact is causing the housing market to become stagnant. Many professionals, business owners, entrepreneurs, independent contractors, doctors, attorneys, etc… who have big bank accounts and awesome credit scores are unable to get loans from the banks…because they don’t have a W2 job. If you could market to these people an avenue in which they can partake in the American dream that is home ownership, do you think you can make a profit?
Time to Buy Real Estate | Solution
Millionaires are created by finding answers to problems. The bigger the problem, the more money you’ll make from your solution. Housing is a need that everyone has, and a solution to this need will give you the opportunity to prosper in this down economy. Given the high supply and great demand, this is the best time to buy real estate.
The two problems real estate investors should be answering are 1) how do I sell a house with an underwater mortgage? and 2) how to I sell houses to people who don’t qualify for traditional bank loans? The answer to these questions will make you a millionaire in the real estate investing industry.
For the next three years, we will continue to see increased foreclosures, dropping prices, and more underwater mortgages (where people owe more on their houses than it is worth). These distressed homeowners who have monthly mortgage payments of $1,000 where the same houses in the same neighborhood are renting for $800 /mo are willing to just give their houses to investors who can provide alternative solutions to foreclosures. Banks will not be easing their purse strings and lending more while foreclosures are at abnormally high levels. This increased supply and increase demand make this the best time to buy real estate, if you know how to put these two parties together in a legal manner.
The educated investor who understands how to find, present, and process these types of transactions between distressed sellers and motivated buyers will flourish over the next couple of years. In fact, I’ll even say that more investors who match the best real estate investing strategy with this market will become millionaires between now and 2014 that any other time in this country’s history. Do you see why now is the time to buy real estate?
Are you ready to become a millionaire? Are you prepared to educate yourself on the strategy that will allow you to sell these underwater, ‘unsellable’ houses to ‘unloanable’ buyers without negatively impacting the median price of housing in this industry? Do you believe now is the best time to buy real estate? If so, then visit my site to understand how my ‘Assignment of Mortgage Payments System’ works and you will be able to take advantage of the best time to buy real estate in this nation’s history!
Image: Sujin Jetkasettakorn / FreeDigitalPhotos.net
