Housing Market — Dismal News Continues
I just saw the other day some more real estate numbers about how the US real estate is tanking. In Austin, Texas sales plummeted a quarter on pre-existing homes year over year yet the median price of pre-existing homes is up 7%. In places like Los Angeles, Nevada, Miami, California the news is much more dismal with year-over-year sales down as much as 50% in some areas.
It’s easy to lose faith in a real estate market like this one. Especially if you started investing within the last few years and haven’t seen these kinds of down markets before. Because real estate only soars because “they aren’t making any more of it” you were told. That’s true only if you buy at the right price and not an inflated euphoric value we saw from 2003-2005 peak. Or if you’re a home owner and bought your home in 2003 through 2005 you are most likely devastated financially because of the toll the major price hit has taken on your finances. It’s no secret the US economy and by extension the US realestate housing market and home price increases have been driven by overspending consumers using easy credit.
And this consumer overspending was fueled by easy and cheap loans and loose financing regulations which allowed easy access to home equity lines of credit. I just saw a headline in the magazine Newsweek which said if you have cash to invest with asset prices as low as they are there are tremendous deals out there and a high quantity of them. Also if you’ve been watching the news you’ve probably seen an endless parade of real estate experts.
The common theme I see from these so-called home experts is the prediction that 2009 will be more of the putridness 2008 has shown to home sellers. Not until late 2009 or early 2010 is the real property market predicted to show a turnaround. At this time they say year-over-year sales are expected to uptick as well as prices in the most battered markets in the US.
So bottom line, as an investor I recommend you treat 2009 as the massive buying opportunity it is. Finding a local mls search engine is a key to success in this tremendous buyer’s market. These type of deals at these type of prices may not be available again ever. Maybe they’ll be back but it may be another five to seven years before you have this quick money chance again.
So spend more on marketing and your buying machine. Generate the maximum leads as you can get your hands on. You may even want to look at multifamily investing, investing in mobile homes, or other such creative real estate tactics. Whatever direct mail and postcard campaigns you were planning to do double or triple it as far as you can push it. This is a extremely limited window of opportunity so maximize every possibility you have to fully capitalize on it. By doing so you’ll expand your actual wealth more than you could ever think of doing in such a short window of time.
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