24. March 2011 08:31
Investment Opportunities Not Going Away
A recent CNNMoney article entitled, "Foreclosures Make Up 26% of Home Sales" states that even though home prices are down, sales are up and deals are getting done. That is because 26% of all homes sold last year were foreclosures or short sales. Bargain hunters are buying and holding properties. They buy at a good price and then rent it out. These investment opportunities are not going away. Nearly 30% of mortgage borrowers are underwater on their loans. These owners are vulnerable to foreclosure so the number of distressed properties that will go on the market in the next year or two will probably remain high. Read the entire article at this link.
In a somewhat contradictory article, CNN Money also reports that the number of foreclosure notices filed in February 2011 dropped 14% compared to a month earlier and 27% compared with a year ago according to RealtyTrac. This could be an artificial drop as some mortgage servicers have slowed their foreclosures as they wait to see how settlement talks surrounding the robo-signing mess play out. The good news out of this is that even if the decline is artificial, new home builders will find it easier to compete in the market. New home builders have had trouble competing with the low prices on repossessed homes. Home building contributes significantly to the overall economy more so than the sale of existing homes. Read more here and make up your own mind of where it is all headed.
Marc Austin Highfill
Exit First Realty
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