The February 2013 numbers are out for existing home sales in the United States. It confirms what we expected, a strong sellers market is developing with gains in both home prices and home sales. And this is just the beginning of a long run up in home values. If you are on the sidelines, you need to get off the fence, and jump in.
According to the National Association of Realtors, “Home sales have been above year-ago levels for 20 consecutive months, while prices show 12 consecutive months of year-over-year price increases.” Total existing home sales rose to 10.2% above February 2012 numbers. This market is HOT right now, you need to get in on this! (Learn the details in my upcoming Live, Free Webinar, More Here.)
Housing inventory rose slightly for the first time, in a long time - now at a 4.7 month supply. Those numbers are still very low and pushing buyers into competitive higher offers to get their deals. Listed inventory is down 19.2% from last years numbers.
“Job growth in the improving economy and pent-up demand are causing both home sales and rental leasing to rise. Though home prices are rising much faster than rents, historically low mortgage rates are still making home purchases affordable” said Lawrence Yun (NAR Chief Economist) in his recent report.
The biggest obstacle right now is the limited housing inventory, because homebuyers are hungry. Buyer traffic is up and it is very much a seller’s market right now. This is almost exactly the opposite of the market we were seeing a year ago.
We have to adapt to the changing market.
With low inventory, no “flood of foreclosures” as many had expected, and home prices on the rise, we have to evolve our strategies for finding new ways to find wholesale deals. As I’ve said all along, stop sorting through the MLS (multiple listing service) to find well priced deals. You can’t just make lowball offers on bank REO’s, they aren’t taking them (why would they when there are so many other buyers willing to pay more?). The auction market has dried up in most areas, thanks to large investment corporations looking to buy for all cash and hold for rental income. Those players have changed the game.
We need to work the “off the market” shadow inventory of pre-foreclosures with equity and short sales. Dealing directly with a motivated homeowner, who is not being hit with multiple offers- is going to make you profits.
This is exactly the strategy I am using right now, along with my current successful investor clients. Find out the details this week in my Free Live Webinar “How to Buy Foreclosures: Make Fast Profits Now“. Come check it out and learn the steps you need to take to make these deals right now – in your own neighborhoods – without needing any of your own cash or credit to start.
Talk to you then!