Some good news for housing… December’s existing-home sales climbed 5% from a month earlier, the third-straight monthly increase. Even better, the inventory of previously owned homes listed for sale sank to 2.38 million, the lowest level since March 2005. For all of last year, 4.26 million homes were sold, up 1.7% from 4.19 million in 2010. The best news was existing supply of homes for sale came in at 6.2 months — just about at the 6 month level considered balanced. Lower supply is, the key to our housing recovery. (Read the full report here.)
While the once bloated supply that hit over 11 months not too long ago has slowly whittled to a manageable level. This will give sellers who took their homes off the market a chance to try again to find a buyer. Plus there are plenty of foreclosures working their way through the system that will add to supply down the road.
But home prices have not recovered. Part of the problem is that foreclosures sold for an average discount of 22% from a standard home. And, savvy investors continue their shopping spree. They purchased 21% of homes in December most likely to flip homes or rent them out. Who would blame them? The opportunities to make significant profits in both short term and long term foreclosure investing has never been greater.
As America downsizes, have you looked for ways to capitalize on the increased demand for rentals? As I’ve been recently blogging never in my lifetime have there been so many people that can’t own a home but who are eager to pay you monthly rent for housing. Who benefits from this influx of renters? You do… if you own the right rental properties. Many of today’s renters will pay top dollar to live in a house (as opposed to an apartment) and will not want to move again for many years. What a great time to own positive cash flow rentals and ride the housing wave through the recovery!
Here’s what other housing industry watchers have to say:
Paul Dales, economist, Capital Economics: “There’s no denying that home sales are still low historically, but after having risen in each of the last three months, including a 5% month-over-month gain in December, it is clear that a housing recovery is now well underway.”
Ian Shepherdson, economist, High Frequency Economics: “With layoffs slowing sharply, hiring rising and consumers’ confidence rebounding, the conditions for a sustained recovery are falling into place. Sales and starts will keep rising; prices will then stabilize.”
Join me Tonight with Foreclosure Investor Expert Daryl White to learn “How You Can Retire Rich from Monthly Foreclosure Rental Cash Flow” at 6pm PDT, 9pm EST. This is a brand new live professional investor webinar that includes a free video replay of the call. You must register first online here or call 800-310-7730. Talk to you tonight!
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Theres a company called Foreclosure Defence and they have helped me with Foreclosure. They stopped it straight away. Tel – 877-670-9214