If you are shopping for a home in the buyers’ market of today – best wishes. You are right on time – ripe for home buying as never-before. But please take the precautions to make it a most successful endeavor in your life. Watch the housing market trends first, before searching your dream home from the Multiple Listing Services or seeking the help of a reliable buying agent from your locality.
Now what are the options before you as a home buyer? Before that try to understand, at least as an overview, the developments taken place in the recent months in the U.S. real estate market as a whole. There is no need for anybody to tell you that the devastation of foreclosure crisis hit the country some 4 years back and all the housing markets are struggling to come out of it even today.
The default in repayment of mortgage loans and the consequential effect of mortgage lenders initiating foreclosure process has opened up the flood-gate of foreclosure properties, inundating all the housing markets. Prime locations where people had an eye for long – such as California, Florida, Michigan, Georgia, Arizona, and Nevada – were flooded with foreclosure properties huge in number.
Result is – the inflated property prices by home owners, who bought lucrative homes in these areas, with the free-flow of home loans during the boom years – plummeted like anything. When there was availability in plenty of foreclosure properties, at a fraction of their real value, who will look into the re-sale properties first?
Also the stigma in the minds of people towards buying a foreclosed property has long gone, over the years. As a consequence, the sale of distressed properties account for a sizable percentage of total home sales, in every housing market.
Now coming to your options for purchasing a home – if it is intended as an investment to derive rental income, or flipping in the near future, a foreclosure property will be the best choice. As a successful business tactic – buy low and sell high – your investment is going to be abysmally low, to get you back the best return on investment for a long period to come.
If you seek a home for living, then you have to consider many aspects – like the condition of the property concerned. Logically, the distressed home owner when vacating the house would not – in all probability – leave it in a tip-top condition. So an existing occupied house would be a better choice than this for you.
The median price of homes published every month through the real estate statistical analysis sites is a best indicator. Here again – in some markets when home sales figures are up the median prices are also going up; or sales is up but prices down. You have to watch these factors closely. More so in your preferred neighborhood or location, so as to come to an informed decision.
One thing is sure, judging by the way property sales are showing an upward trend, in all the housing markets for quite a few months now – you may have to pay more for a most suitable home, if you wait for long. Invariably, it is a fact that best properties from first-class neighborhoods and locations just fly from the market, as people grab them immediately with both hands.
Added advantage is mortgage rates have marketer prime touched the record bottom low points currently.
Amitesh Kumar, expert author of real estate market, thrives on writing for different niches. For Revitalizing the US Real Estate Market One Property at a Time then better to visit here