Original article, written by the same author posted on phoenixhomesforsale.info
There are so many puns which could be applied right here. Time finally gets with the times! One of their most recent article is a rehashing of what we have now been saying for months. “Why This May Be the Ideal Time to Buy Real Estate”
In fact, Times may be a little bit behind the times. Last month the amount of contracts went up 4% nationally, and the bidding wars have begun again – this hadn’t happened since the pre-bubble days.
The only thing that is worrisome about the picture is the amount of investment properties being snatched up. Wise investors are taking advantage of low cost, looking to sell high later. In fact, this year over last there are 65% more investment properties being purchased. Not only are investors taking advantage of the fact that they will sell high later, but also that it is much more advantageous to take advantage of relatively high rental costs. In fact, it is more expensive in 98% of the nation to rent than it is to purchase real estate.
Why is this worrisome? Because the market needs to be fed by actual consumers. When everybody turns into an investor, what are they then feeds an investor – a bunch of empty homes? What are investors then investing off of? At that point investors quickly shed properties, and we see a cycle. Let’s hope the time between peaks and valleys decreases and that the market finds a stable equilibrium. Investors spur bidding wars at a much more rapid pace which for better or worse, is inflating home prices.
Short sales are outpacing foreclosures now. This is great news – because if a short sale can occur then there is much less collateral damage.
What does this all mean? In areas such as New York where the inventory is 16 months our, it’s an excellent time to buy. In areas like Phoenix where the inventory is dropping a few sizes in the waist the right time to buy was yesterday. Does that mean it’s bad today? Absolutely not. It means that you need to move quickly before the boat sails. There are several programs which can help qualify buyers, such as the FHA. Check into it to take advantage of a resurging market before you get caught left in the dust.