The Real Estate Gold Rush: Time To Buy Again?

Real Estate Gold Rush - Best New Asset ClassReal Estate is the United States Best New Asset Class

 

For the past few years we’ve bemoaned the housing bust, the credit crisis, toxic mortgages and the foreclosure onslaught. But at a time when unemployment has slowly begun to decline and consumer spending increase, there are some housing industry veterans putting their bets on a real estate gold rush. Is it time to buy now? Are we on the eve of another real estate recovery? Some say yes.

 

Since 2006, housing prices have declined 30 percent nationwide and as much as 55 percent in some cities hit hardest by the recession. These lower prices, along with the bulging inventory of foreclosure homes are allowing many cash carrying investors to buy into a seriously deflated market. In some places, homes that sold for $300,000 – $500,000 are now selling for $100,000 at foreclosure auctions or even in short sales. Many foreclosure and REO investors are taking advantage of these depressed values to cash in before prices rise again.  But these homes aren’t just sitting empty after investors buy them, the increase of foreclosures nationwide has also created a rise in former homeowners choosing to rent.  Many REO and foreclosure investors are renting out their properties while prices rebound.  But when exactly will real estate prices begin to make a turnaround?  While no one has an exact date, many are pointing to the decrease in unemployment as a sign that a housing recovery is just around the corner. But some locales may be closer to recovery than others.

 

REO and foreclosure investors looking to buy into real estate before housing gold rush gains its footing, need to do their research. Find out which markets are rebounding by studying the selling prices of foreclosures and non-foreclosures alike. Also, look at the overall financial health and quality of life in the city you’re buying. Are unemployment numbers down? Are jobs leaving or arriving? And finally, how easy is it to attain a mortgage? All of these factors are important when determining whether now is the time for you to buy?

 

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