When it looks bad and it looks like things are going to get worse thats the time to pull the trigger and buy real estate to have the highest probability of making top profits investing in real estate. Thats the consensus of veteran real estate investors, who have made fortunes investing.
The best buyers market forecast for 2008 will provide a wealth of opportunities for veteran investors and first time investors to buy real estate, many of whom will purchase foreclosures to get what they hope will be the best price possible in order to make a profit.
The over-whelming majority of the nations housing markets are suffering from real estate deflation. Many urban markets have already seen home values drop as much as 50%, and the worst real estate deflation in more than a half century may still be ahead for many local housing markets. But veteran real estate investors go against the mass mentality of buying in over-heated markets and wait until the market cools before investing. In 2008 that time is here, according to the latest Housing Predictor forecast.
Record high foreclosures in the majority of housing markets are providing just the inventory that investors have been looking for and many especially hard hit markets are seeing an increase in inquiries with pent up buyer demand. Foreclosures and re-sale properties negotiated for the best price possible are supplying a large inventory for buyers, despite a worsening national recessionary economy.
The Federal Reserves move to slash interest rates is at least partially responsible for a slow but steady increase in inquiries to real estate sales agents in many areas of the country. The Fed is clearly on a path to at least help to reignite the U.S. economy and aid in the recovery of the national real estate recession.
In many areas, homes that are selling are closing at prices that havent been seen for five years or more. In the 251 markets Housing Predictor tracks only 60 markets are forecast to experience appreciation in 2008, while the majority will see falling home values.
The Worst 25 Markets forecast for the year will have some of the best deals. But deals or what some might find as steals can be found just about anywhere, if you look hard enough.
The majority of American home owners dont, however, purchase real estate for investment purposes. Most people buy their homes to have a place to live in and to make a home and enjoy. Historically, only 15% of all real estate investors make a profit buying property. But that all changed during the recent real estate boom when many investors, who got in early found it hard to lose. Its hard to tell what that statistic would be today.
A Housing Predictor survey found that the majority of real estate investors, who became wealthy investing in property, purchased real estate to own for the long term before cashing in their profits. (Read more on the survey in the Housing Research Center).