WHO KNOWS WHAT DANGER LURKS IN THE REAL ESTATE MARKET FOR 2011????
THE SHADOW KNOWS!
THE SHADOW INVENTORY…THAT IS…
Dana Point CA Click for Info
Core Logic announced this week that the Shadow Inventory of Foreclosed and nearly foreclosed homes grew to 2.1 Million homes, up from 1.9 Million just 60 days ago.
Taken together with the existing homes on the market, it would take…
23 months to clear the properties in the “pipeline”…assuming the pipeline is not clogged by lack of desire or ability by the home buying public. What if the interest rates go back up to pre-2005 levels?
When it appears that home prices are going to drop another 10% to 20%…why would the average buyer get involved?
1) They want a home and don’t care what tomorrow brings = Nesters who don’t know better?
2) They get a “killer deal” (maybe not so killer when the dust settles).
3) It’s cheaper to buy than to rent in some areas of the country (not Southern California).
Who would a home owner get involved?
1) Job transfer.
2) Death
3) Retirement.
4) Short Sale or Foreclosure
I thought the Fed and the President told us “Prosperity is Just Around the Corner”.
It may be 2012 or 2015 before we actually REACH that corner.
THERE WILL BE A LOT OF FOLKS WHO SHORT SALE OR LOSE THEIR HOMES TO FORECLOSURE. They won’t likely be buyers again for the next 5 to 10 years because of the Credit Score and Down Payment restrictions. THEY’LL BE TENANTS FOR QUITE A WHILE…ESPECIALLY IF THE INTEREST RATES GO UP!
Call me to buy Southern California Apartment Building Investment Properties. Fourplexes are the best investment because they still qualify for Single Family style loans. 16+ units make a great deal of financial sense and will take a larger down payment, however, rents are going to go up as the available pool of rentals gets absorbed in 2011 & 2012.
CALL ME!
Southern California Apartment Building Investments 