The long term upward trends in both home prices and sales continues. Existing-home prices up 11.3% to $183,900 and home sales up 11% over last year. This is the seventh back-to-back monthly increase from a year earlier. The last time we had this strong an improvement was in November 2005, according to the National Association of Realtors.
The strong housing market rebound is a combination of a more favorable housing mix (distressed sales down to 24% of the market) and overall home price appreciation. Other indices like Case-Shiller and the Federal Housing Finance Agency price index are also showing price increases, confirming the housing recovery is in full swing.
Adding to the real estate investor excitement is…
Inventory is dropping, so you can expect upward price pressure to continue. The supply of homes available for sale is now at 5.9 months, the first time in a number of years the number has dropped below 6 months. Listed inventory is 20% below a year ago when there was an 8.1-month supply. In many of the coastal markets inventory is much lower, such as in California, with a 3.7 month supply of homes. If you are not working the “hidden” off the market foreclosure inventory, you will NOT find deals. (Learn more tonight in my free Real Estate Investor training. )
Time on market has dropped to a median 70 days, with roughly a third of all sales closing in 30 days or so. At this time last year, the median time on market was more than 100 days, so the trend is also positive.
Pending Home Sales are Also Up
Pending home sales, a leading indicator of contracts signed, are up 14.5% over last year. Pending sales have risen for 17 consecutive months on a year-over-year basis, leading to the solid recovery seen this year. In September all regions were showing double-digit increases in contract activity from a year ago.
Overall Housing Market Trend is UP, Real Estate Investors Rejoice
“The shrinkage in housing supply is supporting ongoing price growth, a pattern that could accelerate unless home builders robustly ramp up production. [there’s been] nearly 5 million job creation and this is supporting the housing market this year and it will continue to support it next year,” said Lawrence Yun, NAR chief economist.
Rising rents are also helping to bring new buyers into the market. NAR’s latest member survey showed 60% see rents rising in their markets. When rents rise, some of the renters will want to become owners, so there will be additional stimulus for more home sales in 2013 and beyond.
This is an Incredible Time to Invest in Real Estate
Whether you want to” flip” (buy, fix and sell) a foreclosure home in 90 days for big profits; or “assign” your deal to another investor for an immediate pay day; or buy and hold high cash flowing rental properties… your timing to make serious money in foreclosures has never been better.
There are a ridiculous amount of riches to be made by savvy investors who know how to find super discounted foreclosure homes, before they are gone. With the shortage of available foreclosure homes on the MLS (multiple listing service) – you will get stuck in bidding wars on well priced listed properties. That is not where you will find your deals.
You must find the “hidden” foreclosure deals that are being missed by your competition. And you must know how to approach foreclosure home owners (and their agents) direct, how to price and structure your deal for instant profits, and how to find the money to close your deal (when you have none of your own).
All of this and more I will be sharing tonight in my live special event webinar “Real Estate Investors: Make Fast Profits Now” at 6pm Pacific (9pm Eastern). Please register here. All attendees will receive a free audio and video replay of the call. So make sure you join in. Talk to you tonight!