As a 13 year veteran of the real estate community, I often have been asked "is this the market bottom?" and "when should I invest in these distressed sales for maximum return?" I've delayed my enthusiasm until recently, and this is my first post related to the topic. I feel today's (Jan 20th 2012) housing report reveals some true opportunity and reason for excitement.
The National Association of Realtors reported today that the volume of home sales hit an 11 month high in December, while the # of units on the market (available inventory) dropped to its lowest since March 2005. At the same time, home prices reported another drop of 2.5% from a year ago, making the total price decline for 2011 over 2010 to 3.9%. Home prices on average have not been this low ($164,500 nationally) since 2002.
Given these indicators--and my observance in the Chicago market that some of the best foreclosure deals now seem to be few and far between or sold within a day with multiple offers, could this be the true bottom of the market and the ideal time to buy property?
With interest rates hovering around 4% aka record lows, and a continued drip of bank owned and short sale distressed inventory to choose from (albeit not the large range of choices we saw even 6 months ago) I feel this may indeed be the opportune time to invest in distressed property.
While outside factors such as the European debt crisis and Middle East unrest/oil issues remain a potential factor in recovery hinderance, and no one can truly gauge the market bottom or recovery until after it has taken place, these statistics show something is indeed shifting and it may be time for investors and home buyers to take action. For your own custom search via email or to discuss this further, please contact me: Nick@NickLibert.com or 773.980.9339.
--Nick
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