Wednesday, March 01, 2006

Investing in a Changing Market

Investing in a Changing Market: "I get a lot of questions from people asking, �Will real estate investing work in my market?� The truth is, real estate investing works in every market, but you need to learn your market and adapt the techniques that it requires.

There are many ways to describe real estate markets, including �hot� versus �flat� or �rising� versus �falling� or �buyer�s� versus �seller�s.� All real estate markets are subject to fluctuations, but these fluctuations typically do not greatly influence the ability for the informed investor to make a profit. In fact, some strategies, such as flipping, can be the least risky way for a beginning investor to make a profit in an uncertain market simply because of the relatively short amount of time the flipper will own the property. Unlike the stock and commodities markets, real estate markets don�t rise and fall rapidly. For long-term investing, additional market factors are important to your buying decision. Investors who plan for short-term real estate market appreciation are speculating, which is outside of the basic model of low-risk investing.


What Is the Ideal Market for Investing?

Let�s be clear: there is no such thing as an ideal real estate market for investing. It tends to be more difficult to find bargains in rising markets, however, because if the market keeps rising, the probability of selling the property quickly for a large profit increases. In contrast, when property values are falling, more so-called bargains become available. Yet you need to assess the true value of these properties based on when you expect to sell the property. Thus, your purchase must be made at a steep discount to allow for a profitable sale later. "
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Almost-New Homes Hurt Sales of Brand-New Ones - Los Angeles Times

Almost-New Homes Hurt Sales of Brand-New Ones - Los Angeles Times: "Home builders figured they'd face cooling demand this year. But they're also facing another challenge: competing against some of their most recent customers.

Speculators, whose robust purchases made 2005 one of the best years for new-home sales, have reined in their buying and started selling amid signs of a housing slowdown. The influx of their almost-new homes is making it harder for builders to sell brand-new ones."
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Existing-Home Sales Decline 2.8% in January - Los Angeles Times

Existing-Home Sales Decline 2.8% in January - Los Angeles Times: "The U.S. economy grew at an upwardly revised but still-weak 1.6% annual rate in the fourth quarter, while sales of existing homes tumbled in January and consumer confidence fell slightly in February, according to economic reports released Tuesday.

Economists said the reports didn't change their view that the economy was probably growing by a brisk 4.5% rate in the January-to-March quarter and will log another year of solid � though slower � growth for all of 2006. "
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Buying a Home Foreclosures- Buying a home foreclosures makes you generate quick profit. Step-by-step process in buying a home foreclosures for quick cash.

Home sales figures set new records

The Calgary Sun - Home sales figures set new records: "Residential sales activity hit a record level in Alberta last month, jumping 47% from January 2004, according to the Canadian Real Estate Association.
As the number of new listings dropped, sales of existing homes skyrocketed, prompting prices to also climb.
The average home price in the province hit $242,478 in January, up 15.6% from the same month of 2004.
It was Alberta's highest monthly level on record for sales activity. "
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Buying a Home Foreclosures- Buying a home foreclosures makes you generate quick profit. Step-by-step process in buying a home foreclosures for quick cash.

National Foreclosures Increase 27 Percent in January - OriginatorTimes.com

National Foreclosures Increase 27 Percent in January - OriginatorTimes.com: "RealtyTrac� released its January 2006 Monthly U.S. Foreclosure Market Report, which shows 103,540 properties nationwide entered some stage of foreclosure in January, a 27 percent increase from the previous month and a 45 percent increase from January 2005. The report shows a January national foreclosure rate of one new foreclosure for every 1,117 U.S. households, continuing an upward trend in which the national foreclosure rate rose in every quarter of 2005"
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Buying a Home Foreclosures- Buying a home foreclosures makes you generate quick profit. Step-by-step process in buying a home foreclosures for quick cash.

Number of Foreclosures Doubles in Michigan

Number of Foreclosures Doubles in Michigan: "Job losses in the state appear to be pushing up the number of people who lose their homes. Home foreclosures in Michigan have doubled in the last two years, making up more than 8% of the nation's total.
People are losing their homes in Michigan at 2.5 times the national rate. According to a website that monitors them, there are 503 homes in foreclosure in mid-Michigan alone. Ingham County has the highest number with 183, and with 127, Jackson County comes in at number 2. Economist Bob Cunningham says when it comes to the growing number of foreclosures"
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Buying a Home Foreclosures- Buying a home foreclosures makes you generate quick profit. Step-by-step process in buying a home foreclosures for quick cash.

Real estate continues to cool

USATODAY.com - Real estate continues to cool: "After five adrenaline-pumping years of real estate sales, 2006 is already fulfilling predictions of a weaker market.
Sales of existing homes fell in January for the fifth month in a row, the National Association of Realtors (NAR) said Tuesday. The same month, new-home sales slid 5%, the government said Monday. Builders are seeing more orders canceled. Meanwhile, the number of homeowners who are late paying their mortgages has been creeping up. "
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Buying a Home Foreclosures- Buying a home foreclosures makes you generate quick profit. Step-by-step process in buying a home foreclosures for quick cash.