DRAT THOSE CALIFORNIOS
Skyrocketing housing prices in California is prompting nearly a quarter of the residents to seriously consider moving to cheaper digs elsewhere.
California has the nation's third fastest rate of home price appreciation this year, behind Nevada and Hawaii, rising more than 18 percent compared to last year, 84%in the past five years and a whopping 338 percent since 1980.
Less than one in five... 19%... of the state's households can afford the median priced single-family detached home, which was $465,540 in September.
Lots of these Californians are selling their homes for big dollars and moving to other states where they can buy a similar home for a fraction of the price.
Arizona and Nevada are prime target areas.
In those states the number of sales of homes to San Francisco Bay Area residents has risen by as much as (gulp!)6,000% percent. That demand forces prices up!
Here in the Phoenix area we are smack dab in the middleof a home buying frenzy. In the last three months we have put four homes on the market. Each of them sold inONE DAY! Offers above asking price are common.
Real estate agents are tearing their hair out because theycan't find homes for their buyers. Our listings with adiscount broker prompted dozens of calls from desperate Realtors.
The other side of the coin is that it's very hard tofind good renters. Anyone with the slightest record offinancial resonsibility is buying a home.
If you are a cycle investor you buy near the bottom and sell near the top.
Is this the very top? I can't say, but when homes areselling a few hours after being listed it would seem toindicate that we can see the top from here.
If you are in one of these hot areas it is the perfecttime to buy and flip.
Start walking neighborhoods in the early evening and weekends. Knock on every door asking, "Are you the folks with home for sale? Do you know of anyone who would beinterested in a fast sale?"
You will find properties! You can sell them the nextday! Racking up a profit of five grand a week is notimpossible... if you are willing to put in the work.
With buy and flip you don't have to worry whether or nota top is near. Using options just about eliminates anypossible risk.
