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Economic Recovery and the Housing Market: Invest NOW!

What better investing opportunity is there than to be in on the upswing of a recovery? The U.S. housing market today offers an immediate, historic chance for those who make the decision to invest now and be part of making profits from the recovery. And of course, another chance to hesitate…which I’m afraid for those who do will have you saying years from now…“shouldacouldawoulda.”

 

A few stats supporting the sustainable recovery of the average price of existing homes:

  • Standard & Poor’s Case-Shiller Home Price Index Data of the U.S. housing market shows that over the past year, for existing homes,
    • inventory is falling, from 2.1 million units in June 2012 to 1.96 million units in June 2013, and
    • average prices are going up, from $189,600 in June 2012 to $214,700 in June 2013.
  • Foreclosures are at the lowest level since the NAR began tracking in October 2008, down 23% year over year.
  • Buyers are entering the market as more are able to qualify for mortgages, wanting to get in ahead of their own anticipation of future increases in prices and interest rates.

 

For these reasons and others, I’m pushing my readers and clients to invest now on the right opportunities. The present housing market is at one of the more favorable points, statistically, not only since the crisis in the market was at its worst in 2008, but in any one person’s lifetime. A year of ongoing improvement shows increasingly favorable signs as 2013 rolls on. My own continuing involvement in this market, having handled over 3,000 properties in various states over the past 12 years, has me excited about my own opportunities, and yours as well.

 

Some investors may be hesitating after absorbing several years of gloom and doom from the likes of television and printeconomist and statistics. In 2008 and 2009, the market struggled with a huge supply of unsold homes leading to depressed prices, an unprecedented level of new foreclosures pushing even more cheap homes onto the market, and a squeeze on credit combined with fewer buyers who could qualify in any market.

 

But successful investing requires a firm and realistic focus on the future.  Both 2012 and 2013 bear little resemblance to the grim past. Two of the most important indicators of a continued rise in home prices – low mortgage rates, and a balanced inventory of homes for sale – are converging now.  Following 2012’s steady decrease in the inventory of existing homes on the market, along with still-low interest rates and rising home prices, makes for an optimum time to buy!

 

What are some of the other factors giving strength to the re-surgence in home sales volume and prices?

  • The average number of days on the market is dropping – in April the average days until sale was down to 46, down from 62 days in March, and 86 days a year before.
  • A continuing rise in the average price of home sales means appraisals are no longer inhibiting new sales as they did previously.
  • Rising home prices inspire consumers’ willingness to take on home loans, and the bank’s confidence to provide more mortgage funding.

 

Keep in mind that these stats are nationwide and in some parts of the country are far better than this. These factors and more demonstrate that in current market conditions, under-valued properties with the right attributes for resale or renting are one of the strongest investments available today, not just in the housing market. Rising home prices, stabilizing inventories and a recovering economy present us with a rare and brilliant opportunity. The only other requirements to be part of the profits being reaped from the housing recovery are the resources to invest now, and, most important, a decision to make your move for profit and success.

 

Stay tuned to future posts as we go into how to gather those needed resources and take action now!

About Author

Andy Werner
Andrew J Warner

Real Estate and investing have been my passion for over 15 years. I love transforming a broken down distressed property into something that is fresh, updated and modern. My real estate investing career began in foreclosures, but I have also built new, worked direct with sellers, apartments, condo conversions, rentals, wholesale, commercial etc.

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