27 offers – one – bank owned home for sale
That’s what a real estate agent said she was up against, needless to say sales are up from last year, with activity like that who knows how long it will be before the prices start to climb.
Of course that also means inventory is shrinking, in Queen Creek homes for sale, in the southeast valley for example, as of 9/15/11 there was 72 days of inventory compared to 139 days one year prior.
It appears that investors (not speculators) are driving the market, while many who wish to buy a home sit and watch in fear (fearfully speculating the market may go down more).
I believe it was Warren Buffett that said “Be fearful when others are greedy, and greedy when others are fearful”.
Investors apparently have done the math and figured that anytime you can buy a house for less than it would cost you to build one that is an opportunity, and they have been buying up a lot of bank REO properties.
It is not only the anticipated appreciation ( I expect I’ll see more 1031 Exchanges in a few years ) but the percentage of people renting their home has increased significantly since 2007 as a result of all the people who have lost the homes they once owned to foreclosure or short sale. According the the Cromford Report the demand for rental homes is increasing at a rate of 2828 per month as of September 11,2011 compared to 2553 as of September 11, 2010. A growth rate of 5.3% from 2009 to 2010 has more than doubled to 10.8% over the last year. So not only does an investor see an opportunity for appreciation over time but immediate cashflow and a renter to make the payments on the real estate investment.
This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax advisor to obtain further information you deem necessary. I want you to be prepared. Anything I can do to help, just ask!