I just saw a report that N.A.R. found that home saled dropped by nearly 3%, again, in January.
When buyers are scarce, the Inventory of homes builds up on the market. The Smart Folks are still predicting a Tsunami of FORECLOSURES coming in March and into the Second Quarter of 2011.
The less homes that are purchased, the more the Value of Homes Sinks...the lower the Market Value of Homes...the more homes fall below the Underwater Homes Point.
THE MORE HOMES THAT FALL BELOW THE UNDERWATER LINE...THE MORE FORECLOSURES and SHORT SALES. This isn't Rocket Science...just common sense.
Out of ALL of the folks who lost their homes in the 1980s and 1990s in California, the estimate is that 40% of them became a nearly permanant renting class until the mid-2000s...then they jumped in too late and at too high a price.
NOW, they will resolve to that "I will NEVER allow myself to risk buying a home, again!". So, if 40% to 50% of the Foreclosed homeowners will NEVER own again...the demand for Apartments and Rental Homes will grow VERY QUICKLY in Southern California...and elsewhere in America.
NOW IS THE TIME TO GET AHEAD OF THAT CURVE....BUY APARTMENT BUILDINGS (4 PLEXES GET SINGLE FAMILY HOME LOAN STATUS EVEN IF THEY ARE "NOT" OWNER OCCUPIED).
THE EASIEST BUILDINGS TO SELF MANAGE ARE DUPLEXES TO FOURPLEXES...one can still easily manage 5 to 8 units, however, there are loan issues because they are considered Commercial Property and it's a real issue if you have vacancies in this unit range.
Feel free to call, email or text me with questions about how to invest in Apartment Buildings before the prices break out upward, again!