NOW May Be The Right Time For Buying Your New Home. Many cash investors are queuing up to buy affordable homes so the supply is drying up in the low-to-mid price ranges. In particular some markets have hedge funds and similar type institutions buying property en masse.
According to various online research providers, the national inventory is down approximately 15.3% and there is some regional variation. Some areas like our market in Atlanta have seen a much larger decline in inventory in the last few months alone.
Cash investors and home owners as well have been capitalizing on a trend and buying up all the cheaper homes as rental properties and often times keeping one to live in as well in some areas. This has worked in the favor of investor landlords as prices have been so low and there are plenty of would be tenants looking to rent with credit still being tight. Renting is currently quite profitable quickly in contrast to the days when a new start up was usually in the red early on.
I have heard rumor that 900,000 HUD properties are supposed to be released by year end. I am not sure if this will actually happen as it is hard to believe banks will flood the market again with properties so quickly. We would like to believe they will not make the same mistake twice but some argue they will be forced to. Throw in the elections and well, time will tell indeed!
In the meantime, now may very well be the right time to come off the fence and make your move if you want that new home while there is still something available especially in the lower price brackets. Housing market experts are tending to agree that the economy is improving and now could be the best time since the 2008 housing crisis to buy a house especially if you don’t need to sell another house to raise the money. We don’t know what the window of time left is but the time to Buy is definitely now!
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