September 2009 Shows Increase In Existing Home Sales: Real Estate Wholesalers Act Fast!
From August to September of 2009, we saw a 9.4 percent in existing home sales.
Because the government credit to first-time home buyers, the market has experienced some of the highest existing home sales activity since July 2007. The housing market could start to improve over the next few months, assuming we continue to experience this growth in sales. This is music to real estate investors’ ears; wholesaling real estate could become massively profitable 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.
Houses are like any other commodity: the prices go down when demand does. In a time of economic crisis, the last thing most people will consider is buying a new house. Those interested in getting into their first home have been intimidated by the recession. What if they were to purchase a house, then get laid off? When the government offered to give new home owners $8,000 for buying their first house, their worries relaxed.
Real estate wholesaling requires that you get homes for way below retail prices and flip them for substantial profits. Wholesale profits haven’t been so hot in the past year because home values are low. If existing home sales continue to increase, we will see fewer available homes throughout the United States. With the decrease in inventory will come increases in value. Once homes are worth more, real estate investors can make higher profits on their deals.
How can you, as a wholesale real estate investor, secure the highest profits possible for yourself? Build your own property inventory! Fix up and rent out the homes to make rental income (and keep the homes safely occupied), and wait until the market improves.
Spend the time you’re waiting for the housing market to stabilize building your buyers list. By the time the market goes back up, you’ll be all set to see some big checks.
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.
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