Real Estate
September 2009 Shows Increase In Existing Home Sales: Real Estate Wholesalers Act Fast!
February 12, 2010 by Michael Kimble · Leave a Comment
This September, there was a 9.4 percent increase in existing home sales from August.
The housing market is seeing some of the highest existing home sales since July of 2007, thanks to the first-time homebuyer credit. In a few months, the housing market should start to stabilize if these trends continue. Increased home values means that wholesale real estate investors could start seeing huge profits once again.
The government has created several new economic stimulus packages in the last year, and most of us are wondering how much they’re helping the economy. Since 45 percent of all homes sold in the past year were to first-time home buyers, we can assume that this package is doing its job. The slump in the housing market was a huge contributor to the recession, and is the reason why home values are so low right now. It’s also why real estate wholesalers aren’t experiencing the profits they have in past years.
The principles of supply and demand apply to the housing market just as they do with other commodities. During a recession, few are interested in purchasing a home, especially their first home. If they lost their job and had to foreclose, it would make it nearly impossible to get a home in the future. The government assuaged those fears by offering $8,000 to all first-time home buyers, and got the market going again.
In order to wholesale real estate, you have to acquire homes at sizable discounts, and flip them to an investor for a profit. For the last year, profits for wholesale deals haven’t been as high as past years due to the depressed real estate market. However, if people continue to buy houses, the housing inventory will decrease. As the inventory shrinks, values will stabilize again. Real estate investors will see greater opportunities for profit.
So what should you do now to guarantee that you get the greatest wholesale real estate deals? Buy now while housing is still cheap and available! Buy now and hold on to the properties until they’re worth more. If you have the money to fix the properties up and rent them out, even better! When the market stabilizes, sell the properties and make a big profit.
Once it does, you can decide whether you want to raise the rents or sell the homes. While you’re waiting for values to go back up, you can work on building up your buyers list.
If you want to learn more about real estate investing and ”The REI Lifestyle,” please visit Wholesale Real Estate, then visit Michael Kimble’s blog at Wholesale Real Estate blog.
categories: wholesale real estate,wholesaling real estate,real estate investing
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