Northridge Note Buyer

Do you ever notice how all the so called “experts” come out to tell everyone how to fix the economy when it’s having issues? We see it all the time and no what time of real estate investment you’re thinking about making, they supposedly have the right answer. Listen, the economy will do what it will do, and if you want to profit from this arena then you have to find the right cash homes buyers.

Earlier this year many housing markets across the country saw a 60% decline in retail values before the summer. Then the typical occurred. The 2nd and 3rd quarters enjoyed a slight gain in some markets while in others at least a slowdown in falling prices. Now some realtors are so bold as to predict a slow steady rise in home values. Yes, they will have us believe that it will be smooth sailing in the housing market from here on in.

So, are they right? Well, when you look at the supply and demand factor it’s hard to say yes. See, back in 2007 the spring time saw buyers start to hold back. This was due to the winter months being full of inflated prices, and even though they leveled off, it wasn’t pretty. So when cash homes buyers were looking for a real estate investment, they weren’t worried about the normal cautionary considerations. It ended up being a sobering time for many, but fast forward and deflation seems to be the trend.

When looking at the purchase rates, you will find that most families decide to move during school summer break. This allows for a much easier transition, and when the market knows this, prices tend to rise.

Recall the federal mandate to banks temporarily holding up the flow of foreclosures hitting the market. This occurred nationwide during this time of greater demand. Where was the supply now? With a sizeable percentage of all listings on the market held back (foreclosures), the falling values across the board would naturally slow if not reverse slightly. And that is exactly what the market experienced. The supply was lower while the demand was higher.

What, then, does this spell for the near future? Well, peak season came to an end and September brought a new flood of foreclosures hitting the streets. The tables had turned once again and now supply grew while demand diminished. The massive number of foreclosure files yet to be processed is an indication of a steady supply from desperate sellers. Thus the trend will likely continue in a downward direction at least till next spring.

Another thing to understand is that many of these foreclosures are considered “A paper” loans. Those who have larger incomes realize what is happening, and decide to get rid of their homes and relieving a monumental piece of debt. However, two years from now they will be able to purchase the same home for much less and end up making out. You can see that this makes complete sense.

What it comes down to is there are interesting real estate investment opportunities for cash homes buyers. This is why we purchase homes in the U.S. during these specific market conditions. If you can apply the “supply and demand” scenario, chances are you can make insane profits.

Lance Wilson an active Invesdoor Territory Managers and real estate investment expert . Need to Sell Your Home , we Buy Houses for cash fast . We pay for homes cash

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