Market Trends and Condition

The foreclosure crisis has peaked, and now the nation, by and large, is in recovery mode. The nation’s foreclosure rate has dropped significantly since its 2010 peak, and is now at levels not seen since 2008 (and as early as 2006 in some parts of the country).

With that said, there are plenty of foreclosure homes available for purchase all throughout the country. These distressed properties abound, from suburban communities to big-city metro areas, and can be had with steep discounts off their fair market value.

The trick is to understand how buying foreclosures is different from buying a traditional, non-foreclosed home.

Here are three tips for buying foreclosures and getting a great deal for your investment.

Real estate is local, and every market is unique. However, certain trends are national in nature, and the law of supply and demand doesn’t change from market to market. Playing out in the Las Vegas, NV market right now is a situation with cash buyers leaving the market. It could be a learning tool for investors in other markets to mitigate risk and even possibly wait for better deals to appear with lower demand.

The people saying that certainly aren’t engaged in flipping. Watching the house flipping “reality” shows on TV, it’s no wonder that everybody and their brother wants to jump into flipping. After all, it’s easy to grab up a dilapidated bargain, slap on some paint and new countertops, and sell at a big profit … right? Maybe.
Redfin pulled some average flipping profit numbers that certainly seem to bear out that it’s a major profit generator for many. The top 27 markets averaged $90,200 in profit per flip in 2013. California dominated the top of the list for average per-flip profit with:
• San Francisco $194,600
• San Jose $152,000
• Oakland $134,500
• Los Angeles $126,100

Take a look at any recent or even past marketing or market-related reporting coming from NAR, the National Association of Realtors, and you’ll find that it’s always a good time to buy a home. Right now with dismal sales, a lousy economy, and almost no first time home buyers anywhere to be found, just where is the “pent up buying demand” that the industry wants so much to promote? By promising that demand is about to spike, it makes some people feel safer in buying and expecting prices to appreciate.
Unfortunately, almost no data exists to support this theory. People aren’t buying or selling homes for a number of fundamental reasons:
• They’re insecure in their jobs.
• They’re experiencing wage increases below the inflation rate.

If you’re in search of a booming real estate market – one marked by rising prices, bidding wars, and a tight supply of homes – there are few places experiencing a bigger rush today than Buffalo, New York.

Over the past few months,Buffalo real estate has taken off. Price per square foot, a key metric in evaluating the worth of homes in a certain area, has doubled within a year in many parts of the Buffalo area. Even in “slower” areas, like Elmwood Village, the increase in price per square foot is up by 50 percent.

http://money.cnn.com/gallery/real_estate/2014/04/02/housing-priced-out/i...

It’s not new news that a major chunk of home purchases are being made with cash. For several years now, there’s been a steady 30%+ of cash home purchases fueled by investor demand. This is more true than we can prove with hard numbers, as many deals over the past few years were “off the books” in a way. Investors were buying before homes hit the MLS, buying directly from banks, and thousands of homes were purchased in bulk deals. Many of these are not in the data that reports that 30% number.

tenants can go to jail for failure to pay rent. Landlords do not have to even maintain their properties. Great for landlords, but very harsh on tenants. Watch just a few minutes to see.

https://www.youtube.com/watch?v=9G2Pk2JZP-E

The title could easily indicate a movement of business in a local area to accommodate where people want to live. However, there is another and much larger trend that’s changing where businesses locate by much larger distances.
According to a report from Cushman & Wakefield titled “Human Capital: The War for Talent and its Effect on Real Estate,” there’s a massive shortage of available workers between the ages of 18 and 64 developing in many areas of the country. The report predicts that this trend will cause a lot of changes in real estate markets over the next couple of decades.

Interest Rates Move Strongly Downward
On Jun 12, interest rates moved downward following a well-received 30-year Treasury auction. The most commonly quoted rates are:
• 30-year fixed at 4.25%
• 15-year fixed at 3.375%
• FHA/VA at 3.75%
• 5-year ARMs at 3.0 to 3.5%
Low rates seem to be the norm for now.

What Today’s Renters Want
There are only two shorts this week, as this one is a bit longer and in two parts.
1. Survey of renters shows they most want:
a. To pay using debit and credit cards.
b. Fitness centers.
c. Wireless Internet access.
d. Open floor plans.
e. Pet perks, like pet park or walking areas.
f. Safe and ample parking.
2. What they’re considering when choosing location:
a. Transportation needs.
b. Safe neighborhoods.