Real Estate Market Trends

D. R. Horton Sales Plunge

No. 2 US Homebuilder - D. R. Horton - said today that new home orders plunged to 8,559 units - a 40% drop vs. a year ago while the cancellation rate shot up 38% in their Q3 results.  Chairman Donald R. Horton said in a statement that, "Market conditions for new home sales declined in our June quarter as inventory levels of both new and existing homes remained high, and we expect the housing environment to remain challenging."  Tighter lending rules are impacting demand while the glut of both new and existing homes for sale remains a major problem.  The CEO said the average price for their homes sold was down 12% to $233,672 in the quarter.

Home Depot Lowers Earnings Goal

Home Depot is also feeling the pressure from the soft housing market and lowered its earnings goal for the fiscal year.  It had predicted fiscal year earnings to fall 15% excluding the sale of the HD Supply business; it now sees adjusted earnings per share dropping between 15% to 18%.  The CFO said in a statement, "While we expect the housing market to remain challenging for the rest of 2007 and 2008, we plan to continue our reinvestment plans for the long-term health of our business, understanding that it will put short-term pressure on earnings."

Buying Discount Property Like Foreclosures and Short Sales and Probates Is the Way to Go

These types of economic reports will continue to plague businesses tied to the housing market.  Notice too, that the expectation is tough times through 2008 - at least they hope so.  This is why I recommend  that buying discount property is a much better way to buy your home or investment property.  According to a leading foreclosure listing service, Find Foreclosures Nationwide there are currently over 1 million foreclosure listings across the country. 

You can learn the skills needed to buy property on the cheap.  Many of the best and most successful investors in pre-foreclosures, short sales, and probate sales 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 by flipping property.  So find yourself a mentor, either in your area or a “virtual” mentor and start learning how to buy discount property and make money. 

For more information on buying below market foreclosures, fixer-uppers and other discount properties and working with a “virtual mentor,” visit the Real Estate Investing Guide Center.

Technorati Tags: real estate, housing, foreclosures, fixer-upper, pre foreclosures, pre foreclosure, preforeclosures, bank repo, bank foreclosure, investing

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