One in 4 US homes for sale on August 1st had their prices marked down at least once since being listed on the open market.
Watch this short video about today’s Real Estate Investing News:
Real Estate Investor Coach Response:
To think that 25% of the listed homes on the market lowered their price is very powerful information. What are you doing about it? This is a great opportunity to request seller financing, or subject to transactions. This is still very much a buyers market, and it probably won’t be for much longer. I do believe that there is still probably a year before the market begins to show any signs of a turn around. Remember real estate investing is all about the MATH! You need to be making lots and lots of offers on properties. If you are not making offers, then you are not buying properties. These properties that are lowering their prices are perfect homes to make offers on.
To find out more about what is happening in your local area I highly recommend checking out the site: www.Trulia.com
Just 23% of short-sale offers that homeowners receive from potential buyers actually close, according to a February study of 1,300 real estate agents by Campbell Communications.
Short sales once were extremely rare. But now, with unemployment climbing and home values down, more homeowners are pursuing short sales when they can’t afford their mortgage. About 11% of all sales transactions in June are such short sales, according to the NAR.
Uncompleted short sales that go to foreclosure are costlier for lenders and homeowners. For lenders, a short sale may save as much as 30% of the expense incurred by going to foreclosure.
Real Estate Investor Coach Response:
These are all very interesting facts about short sales. It is no doubt that shorts sales take a long time, and that the majority of the attempts fail. So why is this? There are multiple reasons, but lenders lack the internal staffing, expertise and systems to process these short sales in a timely fashion. They can also be very complex, especially if they involve home-equity lines of credit or other second liens held by different lenders, who also must agree to take less than the amount they’re owed from a home’s sale. But most importantly, the people who are attempting them, don’t have a clue, and aren’t prepared for the process.
Listen, if you want to make money in short sales then there is no better system out there then my Foreclosure Gold Rush System There is no better teacher out there then me. This may sound cocky or arrogant to some, but the fact of the matter is this…not only do I teach real estate, but I continue to buy and sell real estate every single day. I built my business around short sales, and am more than qualified to teach others how to do the same.
If you want to finally learn how to make big checks in real estate then you need to learn about my coaching programs . They’ll change your income and your life!
Home prices rose 0.5% in May from April, according to the Standard & Poor’s/Case-Shiller home price index, which measures changes in the value of residential real estate in 20 cities.
After 16 consecutive months of record year-over-year price declines, beginning in October 2007 and ending in January 2009, the home price index has now shown four consecutive months of smaller annual declines.
Real Estate Investor Coach Response:
Yes, It’s true my fellow real estate investors, it looks like house prices are beginning to rise on a national scale. Please don’t take me as a pessimist, but rather a realist as we look deeper into the statistics. First of all, these statistics are only taken from 20 major cities across the United States and the numbers are averaged together. So, just because the average of these numbers shows a slight increase, it doesn’t mean that people can expect to see year over year appreciation again. Only time will tell what the future holds for the real estate market in our country. Ultimately, this is a good sign and step in the right direction.
What it really comes down to in my opinion in regards to the longevity and sustainability of the housing market are 4 primary things: (1) Consumer Confidence (2) Unemployment (3) Interest Rates and (4) Inflation. Of these three I believe Interest Rates will be the ultimate factor that can directly affect that other 3. It is frightening to know and see the way the government prints money these days and you can mark my words that eventually it will come back to bite and all of us will be effected as a result. Hopefully the government economists know something that I don’t in regards to keeping these 4 items in check.
Until next time, keep the cash flow coming in with creative investing!
The total number of home sales increased for the third consecutive month and was a 3.6% increase from last month.
On the flip side, the average overall home price has continued to decline. Currently the median home price across the country is $181,800. This is 15.4% less than this time last year.
Real Estate Investor Coach Response:
Quite interesting information if you ask me so what does it really mean and how can we as real estate investors leverage this knowledge to grow our business?
First of all, in regards to the economy, the fact that people are buying properties is a good thing. The “herd” (my new term for the conventional wisdom people of the country) is beginning to regain their confidence and take action on real estate again. The assistance from the government and the lower interest rates from the Fed, I believe played a strong role in this new upswing, and that is a good thing (golf clap for the government and the fed)!
In regards to the flip side of this news, the stats show that home prices were clearly inflated on a national scale and the market is simply correcting itself. Ironically, the economics classes that I took in college are starting to flash in my head as I write this article. I guess some of what I learned in college has some truth to it…markets will eventually correct themselves and get back to equilibrium, until outside forces (like the media, the government, the Fed, the banks, etc) shake things up again.
Just like everything else, the real estate market fluctuates, the stock market fluctuates, there are booms and busts, and eventually everything come back to equilibrium and then the process of ups and downs repeats. History becomes reality and reality becomes history.
So, again….what should you as a real estate investor learn from this? You should learn how to make money in good times and bad. If you don’t already, make sure that you have the knowledge to invest in real estate in multiple different ways. You need to be a transaction engineer, not an all your eggs in one basket investor. The knowledge that you can and should possess as a real estate investor will carry with you from here on out. Make sure that you are implementing your knowledge and skills every day to make as much money as you possibly can.
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