|
Last Updated: May 14th, 2012 - 22:24:01 |
Real estate values rise and fall in cycles. Currently home prices are nearing a top in many areas.
Skyrocketing housing prices in California are prompting nearly a quarter of the residents to seriously consider moving to areas with more affordable housing.
California had the nation's third fastest rate of home price appreciation last year, behind Nevada and Hawaii.
Prices climbed more than 18 percent compared to the previous year, 84% in the past five years and a whopping 338 percent since 1980.
More below...
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.
Guess what? 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 huge demand forces prices up!
Here in the Phoenix area we are smack dab in the middle of a home buying frenzy. In the last three months we have put four of our rental homes on the market. Each of
them sold in ONE DAY! Offers above asking price are common.
Real estate agents are tearing their hair out because they can't find homes for their buyers. Our listings with a flat rate discount broker prompted dozens of calls from desperate Realtors.
The other side of the coin is that it's very hard to find good renters. Anyone with the slightest record of financial responsibility is buying a home.
If you are a cycle investor you buy near the bottom and sell near the top.
Is this the top in some areas? I can't say, but when homes are selling a few hours after being listed it would seem to indicate that we can see the top from here. That doesn't mean there will be real estate crash, but there certainly will be a leveling off of prices and perhaps some of the sudden gains will be retraced.
If you are in a hot area it is the perfect time to buy and flip.
Start walking neighborhoods in the early evening and weekends. Knock on every door asking, "Are you the folks with a home for sale? Do you know of anyone who would be
interested in a fast sale?"
You will find properties! Some you may be able to sell within 5 or 6 days. Racking up a profit of five grand a week is not impossible... if you are willing to put in the work.
With buy and flip you don't have to worry whether or not a top is near. Using options just about eliminates any possible risk. And a fast flip can be generated using the
"How to Make Money In Real Estate Without Owning Property" system.
There's money to be made... if you are nimble.
About The Author - Mark Walters has written
"The Million Dollar Foreclosure System".
Do you own real estate articles or stories and want to share with other investors?
You have chance to win
$100 Amazon Gift Certificates. We will give
away 3 prizes for top authors each month!
Email your articles or stories to:
articles@buyincomeproperties.com
© Copyright 2001 - 2010 by
BuyIncomeProperties.com
Visit
Real Estate Forums
for every real estate investing topics!
Enter Here
Top of Page
