Buying pre foreclosure homes could be the ideal investment as new home sales continue to fall
Real estate housing market update
New Home Sales Continue To Fall
US NEW HOME SALES DATA just released today reveals sales of new single family homes fell further by -3.9% to an 848,000 unit selling pace last month. New home sales fell off the map in January, down -15.8%. The consensus had looked for a rebound but homebuilders have been warning against such optimism.
The real test of demand in terms of a bottom comes in the key spring selling season. Guidance by many homebuilders has been cautious at best.
The supply of homes for sale remains high, rising to 546,000 in February but still below 560,000 last September. Nonetheless, the supply of homes based on the current selling rate rose to 8.1 months – a new high this cycle but below the record of 9.1 months in 1991 during that recession.
Regonial New Home Sales Data
Regionally, home sales were down everywhere except in the West which rose to 233,000 from 187,000 last time. Sales in the North East fell to 41,000 from 56,000, those in the south plunged from 484,000 to 450,000 and the Midwest saw sales slow to a 124,000 clip from 155,000 last time. The median home price was off -0.35 Y/Y but rose on the month to $250,000. Homebuilders report that spring sales are not slow so far, with buyers looking for bargains.
Buying Pre-foreclosure Property – An Alternative Right For You?
Perhaps those bargains should be in the form of buying pre-foreclosure property. According to a leading foreclosure listing service, Find Foreclosures Nationwide there are 219,649 preforeclosures across the country.
Pre-foreclosure homes have some striking advantages when it comes to real estate investing including buying a home at a deep discount price below current market values.
Highly successful real estate investors have developed two important skills when it comes to pre-foreclosures, namely, how to find pre-foreclosure listings before the competition does and how to contact and effectively negotiate a purchase contract with the home owner while the clock is ticking.
Whether you are interested in buying a pre-foreclosure for your personal residence or are interested in investment property, these critical skills can be learned. I recommend you work with a real estate investor mentor in your area. If you can’t find someone local to mentor you, then work with a “virtual mentor.”
Many of the best and most successful investors in pre-foreclosures have written step-by-step guides to help someone just getting started or someone who wants to improve their skills to make even more money. So find yourself a mentor, either in your area or a “virtual” mentor and start learning how to make money in pre-foreclosure homes.
For more information on buying pre-foreclosure properties and working with a “virtual mentor” that specializes in pre-foreclosure homes, visit the Real Estate Investing Guide Center.
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