I have posted a chart for Contra Costa County Real Estate Mortgage Loan Defaults from December 2001 through November 2009. This chart uses a 12-month moving average of data.
How to read this chart: when the market momentum reading falls from above the "0" line to below the "0" line, this signals that the trend in mortgage loan defaults changes from an uptrend to a downtrend. When fewer people have difficulty making their mortgage payments, this is a positive sign for the local economy.
When the marketing momentum reading climbs from below the "0" line to above the "0" line, this signals that the trend in foreclosure sales has changed from a downtrend to an uptrend. More and more people are having difficulty making their mortgage payments. This is a negative sign for the local economy and its real estate market.
This chart is one of five key real estate indicators called "vital signs" used to track local real estate market trends. Mortgage Loan Defaults (NOD's) is Vital Sign #3.
NOTE: when you see that Vital Sign #1, #2, and #3 all give signals to buy, you can now be 80%-90% confident that a major real estate upcycle is underway.
"The Campbell Method" is a proven system for buying and selling real estate for maximum profits. Based on five key real estate indicators- called "Vital Signs" - The Campbell Method is a clearly defined approach to real estate investing that shows you how to anticipate the peaks and valleys of real estate cycles with incredible accuracy. These Vital Signs act as "leading indicators" and give you as much as 3 to 6 months advance notice to the direction real estate prices are likely to take, long before it becomes obvious to the general public.
I recommend that you purchase and read the book "Timing the Real Estate Market"- Robert Campbell. Log on to http://www.realestatetiming.com/ to learn about The Campbell Method, purchase the book and Market Momentum software.
Here is what Timing the Real Estate Market shows you...
How to identify the best time to buy a home- and the best time to sell
How to maximize real estate investment profits - and avoid losses
How to identify the sweet spot in real estate cycles - where the prices can go full throttle through the roof
How to identify the four stages of all real estate cycles - and position yourself to have an overwhelming advantage when you buy and sell
How to read the signals that tell you when the market is about to change
How to avoid real estate's single biggest mistake
Ten cardinal rules to follow - that guarantee optimal real estate success
Why economists and market forecasters are usually dead wrong.
Comments(0)