The best time to buy property in many of the nation’s housing markets will be through the end of 2008, Housing Predictor forecasts. Markets in many areas are bottoming out and have the highest level of properties listed for sale on the market in years, causing downward pressure on pricing levels.
Housing markets in California, Florida, Massachusetts, Michigan, Arizona, Nevada and Indiana among other states have record high foreclosures. Many foreclosures are selling at up to 30% to 50% below their last sales prices.
The meltdown in the subprime mortgage market spread to conventional mortgage lenders. However, investors are purchasing larger numbers of foreclosures from banks and mortgage companies and on the court house steps, where foreclosure auctions are commonly held.
Although the number of foreclosures is forecast to top three million homes through the end of 2009 by Housing Predictor, economists paint a gloomy picture for the U.S. economy’s future. Rising unemployment in real estate related industries contributes to their outlook.
Real estate economists contend it will take at least another 18 months before the national real estate market flattens to the point where enough inventory has been purchased for a higher volume of sales to result and that’s when prices in the majority of the nation’s markets will begin edging up again.
Through the end of 2008 provides the best window to obtain the lowest prices possible, according to the Housing Predictor analysis. The Worst 25 Housing Markets listed by Housing Predictor provide some of the best markets for deals in real estate nationwide. Forecasts for more than 250 markets are provided in all 50 states.
Historically real estate markets throughout the nation experience seven to ten year cycles. It commonly takes two years for markets to stabilize after a period of great appreciation, and the majority of housing markets have now completed that period of time.
Considering a foreclosure is an option and many investors, including first time investors are purchasing foreclosures in order to get the lowest price possible. However, the majority of investors do not make purchases during the down cycles for a variety of reasons, but those who do reap the rewards with higher profits.